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The Industrial History 

United Suites 

IM-I) i 



Nrto fork 


COPYIUGHT, 1905, 1910, 

Set up and electrotyped. Published September, 1905. Reprinted 
February, 1906: September, 1907; August, 1908; September, 1909. 

New and revised edition September, 1910; July, 1911; August, 1912; 
March, 1913 ; January, August, 1914; September, 1915; February, 
June. 1916 ; June, December, 1917. 


J. B. Cashing Co. - Berwick & Smith Co. 
Norwood, MM*., 1 


THK histnr, ted States, more than tha 

any Old World country, is the record of physical ach 

tory by a race of 

extraordinary ncc, resource, and c I the 

essential theme il events 

and social changes are conditioned on .il evolu- 

rica can be comprehended only 

in th linments. 

of agriculture from the pioneer farm to the 

bona :. the expansion of manufactures consequent 

on the subs!?- id factory or^ 

for the domestic hand 1 to com- 

c by steam, the telegraph, elect c are the 

of the t'nited States. 
il organi. in inden- 

1 service t> the trade union, from the self-employed 

.inking to the national 

bank . has more s the ups and 

downs of parties or the re >n. 

Politica and mil:- ii rtakings cannot 

be ignored b\ -nt of ei-> must 

: rated iit il but as a 

disastrous in t ;r s v r hi- financ- 

ing of a war often introduces a into the 

m, emergency taxes retard or pron 
ness and furnish op| ;>ecial legisla- 

nt and disbanding of an 

sudd \ life has 

a demoralizir. ^<xrial in- 

stitutions and tlu-ir slow nations offer a most 

vi face 

Z accompaniment to tin- study of economic evo- 
lution, but they ii be considered as effect rather 

cause of economic tenderu 

ie record of industrial progress may be rendered no 
less intelligible and interesting t< dent 

than the development of political fori; ine^s methods 

are more familiar than mi and a mechanical 

more readily comj d than a constitu- 

tional revision. Elaborate treat ix s have been written on 
various phases of our economic history. It is tin aim 
of this book to bring the essential elements of that history 
within the grasp of tin- average reader. The compli* 
story has been told in the briefest possible fashion, but 
marginal references \vill enable the student to go into 
detail as fully as may be desired. Contemporary prob- 
lems are treated in mere outline. The data essential 
to the study of each have been set forth \vith no expres- 
sion of opinion, the best authorities, pro and con, being 
noted in the margin. A final chapter on the conservation 
of our national resources has been added to this edition 
in the hope of making evident the transcendent impon 
of the interests involved. Here, again, so brief a i 
ment can do hardly more than suggest salient facts, leav- 
ing the student to follow the line of his special concern. 
For the assistance of teachers, suggestions for supple- 
mentary reading and for class discussion are given in an 


1 1 AFTER I 
THE LAND AND, 7V/ i-il 

1 USCOVIKY ittward Route ; 

the Wcv liutrul Resources of America; the 


The Aborigine* ; Spain ; 
Kra .mil ; the final Victory of the 

En* I 

< !!.\rri-.R II 


Bartered Compai 
Associations GrmnU . . .* ; 



Indentured SenrmoU; African Slaves . 41 


( H.\I r !lK III 


ngUnd Colonies; New York; the 
..lonie. ; the Southern Colonie* ; Fostering Legte- 
lation . 

KKS: Cloth Manufa -ulation ; 

leather Mat nufactures; Restriif 




COMMERCE: Wagon Roads; the Coastwise Trade; the West 
ia Trade; !e ; 

Re-' : the Na\ ''<!.. 

j.j'in^ ; tin- I'.numer.r 




CAUSES : the Imperial i 

lintercour- . pe- 

rial Authority; Renewal of Nonintcmuirsc ; 
the Boycott Coni|l t< ; 1 >cx lar.itin of Imleprn : u . . 89 


( iains and Losses ; Development of Man til- 
er's Opportunity ; th . . . 106 

1 !s Settle- 
ments; Indian Wars; Peace and Prosperity . . .123 


NATION A I 11 1: G INN INGS 132-174 

I .linn ; I < 

ipping ; Commercial Treaties ; I.egisla- 
ti<n in Ik-half of Manufai tures ; Hamilton's Report on 
Manufactures; the Patent I^iw ; Regulation of i y 132 

THE ^ -i : the Ordinance of 1787 : 

j ' 

Faciliti-s; the < umberland Road; (Jallatii the 
Louisiana Purchase 15^ 



18/2 'rS- 20 ^ 


Grievances; th'_ War; the I ish- 
cries i?5 

tional "' 1*24. **. 1832, iKjJ . 84 

IAI. DimcrLTiEs: i he Second National Bank; the Crisis 


LAND SPECULATION : The Emigrants aoj 



OF t8j: *>7-*3 

SrKti Manufactures; AK 

ton and> r and Enlerpnw ; Internal 
0mmercc 207 

INTERN AI IMI'ROVKMRXTS: Canals; Railroad*; ^"innTfTTifl 
. the CoaMwisc Trade ; Commerce on the 
.a Lakes ai6 


SraCTi IIIK CKI charter the National 

Bank; Debasement of the Coinage ; Criab of 1837 

(ii \rn K \ni 

;l TORI A I. /A7'./.\-.s7(W AND THE REVENUE 
TARIFFS . j-68 

CiRDV. . 2J2 

KDXESS OP THE SOUTH : Agriculture ; 
Manufacture^; Railroads; Commen - . 236 

TKttrrotiA Texas; Ca ; Oregon. 243 

s TO THE WEST: Financing of the Roads; 
Electric Telegrv Companies .... 148 

KNCE or RKVENTE TAEIPPS: Walker Tariff; Tariff of 
1857; Infant Industries come <x; 

ACT Machinery . 254 

DEVEfjonoEirr OP COMMEECI: Ship-building ; Subsidy Policy . 262 
THE PANIC OP 1857 . 266 



SULTS ... . 269-312 


Proslavery Movem< ; D in the North ; the 
Humanitarian Movement ; Organization of Labor ; Social^: 
husiasm; Slavery and th >; the Republican 
Party 269 

COST OF THE WAR: Confederate Finances; Federal Finances . 279 

INDUSTRIAL TRANSFORMATION : Redcmpti' >n of the Greenba 

Re. .c Tariffs; irosperity; Dn-linc 
of our Merchant Marine; Homestead msconti- 
tal Railways; Crisis of 1873 ; Labor Mnvi-nu-nl ; 1 ami- 
en' Movement 285 


Problem 307 



i ;CY: Crisis of 1884; McKinley Act ; \Vil- 

. 313 

i : ing ; Subsidy 

Policy ; International Mercantile Marine Company . . 327 

CURRENCY PROBLEMS: Demonetization of Silver; the Gold 
Standard ; Financial Crisis of 1893; Revision of the N 
tional Bank System ; Crisis of 1907 ; Reform Propositions . 335 


; Rate Regulation 347 

> ESS MONOPOLIES: Anti-trust Legislation . . . -354 

THE ORGA- : !.>K: Knights of La : -ican 

Federation of Lab- of Trade 

ployers' Associations . . . .361 

IMMIGRATION: Restrictive Legislation 368 

t\-n t<nts 



Exit* "s Destruction of Game 

ami Fur-bearing Animal. ; F.hau , le- 

laaluiagc; Khau%u. a ion of 


PREVENTIVE LK* Barcmu of Mine*; Pare Food and 

DrugUw . .389 

RECLA Achievements 

of Agriculture . 
r. \giuullural I I 

v Fanning . 393 

Conservation Challcngc.1 407 

LIS 1 <>! II 1 V IK >\S 

MA; ! '.' \ ..' : faftM 1 ' : : - l! - ' 
Hi) ', tr < .r- |raj h\ . . . . . . / ' /. /. - .' 


Old > .ule Route* lu the <h. 3 

plorcra . . fatt t 

. .11 


>riginal GrnU . . s fatt 28 



a*t. Massachusetts 

Ceomt, 1885 . 52 

Jwnev . . -55 

Tobacco Culture. The >>ut hern NYi.rkm.ui . 5^ 

(graphs furnbhc 

\\hit: e 60 

Balance of Trade between the Arm t 

n, 1697-1775. Based on llazat al Table . 64 

.\1 Roads 75 

\\ Exports, Annual Average, 1763-1773. Based on Stalls* 

tio .in HUN'-.I: . 80 

nies, 1754 and 1775 . . .80 


from Roos ::ng of the \Vett . . 91 

Trade between the Amcru - and Great Britain, 1764- 

6. Based on Hazar! 1 Tables . 101 

^ions ami Based on 

acker, Revolutionary Finances, and Webster, Political 

I'^-ixs ........... || 

ns Tof* 117 
>gers Clark. Repro- 

. T*fa 126 
Adapted from 
Rr -t . ... 199 


Grinding Corn with Sweep Mill in taint 

Distribution of PopuL >tical Atlas. United 

. Census, 1900 

Early Steamboat Models. < nsus, 1880 

in Use in the Kentucky 

Mountains .'t/att 150 

;csof a Hundred Years . 
Stocking Loom Highlandvillc, Masaachtisetts 

To fact 152 
Spinning Room In Slater's Mill. \Yhiu, Memoir of Samuel 

State Claims to Western I uin< Is 159 

Map- Western Reserve Tract* 

Roads and W.M. Imhv, Us 

West. 163 

An Ohio River Flat Boat, liar . Readers of Arm; 

.lory Tofact 166 

Ecplorations in the Louisiana Territory 173 

umbering 178 

Georgia Sugar Mill. Photographs b> 194 

breaking Flax in th( Kent,. . . . ..'face 196 

Distribution of Population in 1830. 

* Census, 1900 ; 

The Cotton Kingdom and its Dependencies. Olmsted, The 

Cotton Kingdom lo Jace 210 

Travelling by Packet Boat, Erie Canal. Original Copyrighted by 

To fa, 

Allegheny Portage Railway. Original furnished by the Pennsyl- 
vania Railroad o jace 218 

Early Post Roads and Canals. Based on Tanner, Internal Im- 
provement 219 

Early CanaU n ill in Use ... . . To f.n-e 222 

Early Railroad Trains, Brown, History of the Locorn . 224 

Railroad Construction, 1830-1860. The Eastern and 

Slates . 'oface 224 

Cotton Farmers, ( alhoun, Alabama. Photographs furnish' 

Charlotte R. Thome . ' 238 

Cotton Gin and Warehouse, Mobile. Photograph furnish* 

Farnum . ... ^238 
Cotton Traffic at Mobile '1 o /ace 242 


Tfafl* Into the Far West. Adapted from I nman's Maps 7V/" 146 
Railroad Construction, 1830-1860. The MisrissJppi Valley 

*"> 250 
Exports, Imports, and Tonnage, 1789-1860 . 357 

Reaper. Photographs furnished by the Inter- 
.al Harvester Company /* 262 

An Old Time Clipper. Hart. Source Reader* 168 

Distribution of Population in 1860, Statistical Atlas. United 

Statea Census, 1900 281 

Relation of Imports, Sales of Public Lands, and Railroad Coo- 

traction to Financial Criaea. 302 

tig Fertilizer on to Dead Lands, Calhoun, Alabama 

Tff^e 310 

Tbreahinff Wheat with Traction Engine, North Dakota. Photo- 
graphs furnbhed by the International Harvester Company 

7>/w 310 

The Fall Line 311 

Sugar Plantation in the Hawiian Uland*. Japanese Laborer*. 

Photograph* furnished by Professor Henshaw . To fate 318 
rge Coke Ovens, Alabama . . . .<>/<*<< 322 
Exports, Imports and Tonnage, 1860-1908 . 329 

Pine Apple Plat 1 holograph* furnished by Hawaiian 

Pineapple Company r*f* 3*> 

Ratio uf Silver to <;,.M. 1780-1909 . -33* 

the Corn Belt Photograph* furnished by 

nternational Harvester Company I'o fact 340 

ad Combinations, 1909 . . . To fat t 350 

Wages and Prices prevailing in the United State*, 1890-1909 . 368 

Slavic Immigrant* .... . To fate 370 

irl.l* in the Hawaiian Islands. Chinese Laborer*. Pho- 
tographs furnished by Professor Henshaw . To fatt 372 
Logging in the Cascades. Photographs furnished by Warneck 

Ttfiu* 378 
^ of the Lumberman. Photographs furnished by 

roftut 380 

The Wattes of t Kroaion of Iowa Farm Land worth 

1150 per acre. Photographs furnished by Forestry > 

'of 384 

:i of Coal Field, in the United State* . . T f*ct 385 
Anthracite Coal Miners. Photographs furnished by C a 

xvi List ( f I !li t 


il Resources of Alaska. U. S. Geological Survey To face 388 
Navigable Waterways. Report Inlan .iv Commission, 

1908 I'oface 394 

.itional Forests. Photographs furnished by Forestry 

I'oface 398 

The Truckee-Carson Project. Photographs furnished by Recla- 
mation Service To face 402 

Irriga stern Lands 4<M 


or THE 




The Discovery of the New World 

THE explorers of the sixteenth century opened a new 
the indiMrial enterpri>e 

:i had centered in the Orient. Political power 
and i .tl influence had rested in turn with Egypt, 

(lia, Persia, Greece, and Rome. The trade of 
medieval Europe had been with the Levant Even the 
:leet, though it sailed once a year to London and 
the Baltic ports, never ventured out into the Atlantic. 
iost capes were called 1 Land's 

..i', while the great ocean beyond was 
.11 as the Sea of Darkness. Nameless terrors haunted 
its st< tmen hardly ventured out 

familiar headlands. After the adoption of 
compass the Western Islands had been re- 
discovered, and Genoese pilots in the employ of Portugal Cbeywy, 
had braved the thousand miles of stormy sea that lay be- 
tween Lisbon and the Azores, but no man dared go farther 
west or south. Only when the Turkish conquest of Con- Hbtory. 
stantinoplc and the eastern Mediterranean gave the cus- c 
tomary trade routes into tl ig of a hostile power, 

did men seek to tr h as 

: ugal, Isabella of Castile, Henry VII of Eng- 
land, sought n rade route to 
the Orient to India, China, and the Spice Islands. 

2 Indnsti .\>ry of the United A 

ssays in 



>i- . >-. cry MI s. 

I he (ir..-.\!h 
and Vicissi- 
tudes of 


Discovcr>' of 

V. VI; 




The Eastward Route. Prim. II .tin- 

Navigator, first undertook to find an "out- 
India, and many expediti.- mt from Lisbon under 

the auspices of the a-tn.nonu-r prince. They -ailed to 
southward and came upon .nto and M'adi-ir.i. the 

Canaries and Cape Verde Mamk ('; along tin- 

coast, the timorous navigators rounded ('apt- \Ynlr and 
crossed the dreaded Equator, rinally, in 14^7. Barthol., 
mew Dia/ circumnavigated Ah: u tin- < > 

River. A mutiny among his sailors forced Diaz to return 
without traversing the eastern ocean; Imt ten years later 
Vasco da Gama sailed on to India. The conquest of the 
important trading ports followed, and a Portuguese empire 
established in the coveted Spice Islands. Hartholo- 
Columbus, a younger brother of Christopher, accom- 
panied Dia/. and it is thought that In ted to the 
discoverer of America the possibility that a -horter route to 
the Orient mi.^ht be found by sailing directly west. Certain 
it ir. that Bartholomew submitted this plan to Henry VII 
in the year succeeding his momentous voyage. 

The Westward Route. When Christopher Columbus 

hit upon the islands of the Caribbean Sea. he thought that 

they must be on the east coast of Asia. In 1503, Americus 

Vespucius sailed from the Spanish Main to the thirty-fifth 

ilel, south latitude. Finding no passage to the west- 

^ne convinced that this was not Asia nor the 

Spice Islands, but a new world. 

Before this discovery, Pope Alexander VI had declared 
a division of the newly discovered lands between the 
exploring monarchs of Spain and Portugal. All the islands 
lying west of a meridian drawn three hundred and seventy 
leagues west of the Azores were assigned to Spain; realms 
discovered to the eastward were to belong to her zealous 
rival. Ferdinand Magellan, a Portuguese navigator sailing 
under the auspices of Charles V, set forth to circumnavi- 
gate South America and penetrate tin unknown sea be- 
yond, hoping to open a route to the Indie- in tin- region that 
belonged to his master. With heroic fortitude he and his 

//;* /.,/./ 


In if: ry of the United Staffs 


to Ceo 
graphic Con- 

Ch. I. 

devoted crew braved the terrors of an Antarctic winter, 
threaded the windings of the tortuous >trait >ince called 
by his name, crossed tin- ten thc>u>and miles of pathless 
Pacific, and finally reached tin- Ladnmes and the Philip- 
pines. Magellan came to terms with the king of (Yl>u, 
who accepted Christianity and guaranteed to Spain the 
exclusive privilege of trading with the islands, and thus 
was founded a Spanish empire in the Orient. This south- 
ern route to the Spice I>land> was. however, too long and 
difficult to serve the needs of trade. The -carch for a more 
direct passage to the South Sea wa^ then undertaken, and 

:uied for three centuries. Not until the \orth 
Passage was finally proved impracticable did explorers 
abandon the search. The westward route to the Indies 
never found, but the explorers revealed to the aston- 
Mied gaze of Europe a new world a virgin continent to 
conquer, to coloni >ioit. The imaginations of men 

tired by the undreamed-of opportunity, and adven- 
turous spirits gave themselves, body, soul, and fortune, to 
t he prosecution of great enterprises. The people of Eun >j e 
finally abandoned the Oriental quest and turned to 
the Occident. Thereafter riches, honor, power, were sought 
in the Americas, and the Atlantic became the highway of 
trade. Modern commerce centers in western Europe, 
and the balance of power rests with the nations that possess 
ports on the Atlantic. 

Industrial Resources of America. Only now, alter 
four hundred years of exploration, are the resources of 
the New World fully known. Its colossal proportions have 
been gradually revealed, and a second vast sea, twice tin- 
width of the Atlantic, has been explored to its fart hot 
h. Balboa did, indeed, sight the Pacific; but he sur- 
mounted the land barrier at ju>t that point where the east- 
ern and western shores converge to an isthmus but thirty 
miles across. To north and south of this connecting strip 
of land stretch great continents. Of the two Americas, 
the northern has proved to be the richer in natural resources 
and the more available for coloni/ation. It has the advan- 

Thf Land and the People 5 

tagc of belonging to the land hemisphere of the globe. 

h America is one of a ring of continents gathered about 

oast line stretches over a spin 

of one hundred and twenty degrees, and only a narrow 
strait divides Alaska from > Labrador lies but 

two thousand miles west of Ireland. Should a New York 
steamer take the northernmost route, rounding Nova 
Scotia, passing through the Gulf of St. Lawrence and the 
Straits o: uching at Greenland, Iceland, and 

hr tland Islands, she need never be more than t 

land. '1 hi- i- the -hnrtest course 
u^-d by trading 

vessels because icebergs and head wind- t unsafe, 

and because these subarctic lands offer little trait, 
howe M followed l.y the first discoverers of 

America. Vikings from Norway established a colony in 
Iceland it nth century and in Greenland in the 

on made his way down the bleak coasts 
of Labrador to Nova Scotia, possibly to New England, in 
ear 1000 A.D. So inhospitable were these countries 
that the Norse adventurers abandoned their westward 
quest and bei ng keels to the south. t<> the booty- 

stocked ci . France, and the Mediterranean. 

Along the fortieth parallel t} ic measures three 

-and miles from short ; hut. in spite of its 

greater length, this has become vay of commerce, 

in a latitude where ice offers no obstacle to navi- 
gation, lie the best harbors of the American coast, those 
and New York. Here, too, great 
estuaries, Long Island Sound, Delaware Bay, and the 
Chesapeake, e be largest vessels to sail far inland; 

and here deep e Hudson and the Delaware, supple- 

ocean trafii !u most 

productive portion of America. In the huge bend of the 
coast between Cape Cod and Cape Hatteras, soil and 
rlimate and mineral resources combine to create the richest 
'land of the New Worl B im|x>rtant even than 

this physical endown rade wafted to these 

6 Industrie/ History ,/ the United A. 

Basis of 

. \mi-ri can 

shores. North America stands over again-t tin 
mercial nations of Europe and thus has direct miry to t he- 
best markets of the Old World. 

The southern continent juts out into the At hint ir 

farther than the northern. Cape St. Roque is but one 

thousand miles west of Cape Verde. Her river- and 

harbors are no less serviceable, but South America ha- the 

rtune to face the I >ark Continent the uncivili/.ed 

Afric. Both North and South Ameri ailed 

off from the Pacific. A lofty mountain ramje run- tin- 
length >f the v.e-tern coast from Alaska to the Stra: 
Magellan, unbroken the I-thmus of Panama. 

1C trade the northern continent has the ad- 
vantage, since it extends forty-live decrees farther \ve-t in 
the fortieth latitude, the latitude of commerce. From San 
I rancisco to Yokohama is but forty-six hundred miles, 
while from Callao to the Oriental ports is a voyage of 
eleven thousand miles. North America front- the com- 
mercial opportunities of Asia, while South America stands 
vis-d-vis to a submerged continent. 

The Territory of the United States occupies precisely tin- 
most favored portion of this favored continent. We com- 
mand the best harbors of the Pacific as well as of tin- 
Atlantic coast. On the Gulf of Mexico, navigable rivers 
and excellent harbors further our commerce with subtropic 
lands. The Great Lakes we share with Canada, but their 
terminal harbors, those of Duluth, Chicago, and Buffalo, 
happen to be within our boundaries. Taken in connection 
with the St. Lawrence and the Mi--issippi rivers, this chain 
of seas makes up a system of inland navigation unrivaled 
in the world. From the Strait of Belli Me to tin head of 
Lake Superior stretches a water highway twenty-four 
hundred miles in length and so direct that the Norsemen 
found their way to the Dakotas. The headwaters of 
n on the Mississippi may be reached by short 
portages from the Great Lakes. The father of v, 
flows through a vast valley, unsurpassed for productive 
capacity, to a sea circumscribed by tropi. 

Tk< W ///< 

uiing op< reciprocal trade is thus afforded. 

I States comprise* evt 

U ..I altitude admit of great diversity 
of aK products. I ntain ranges contain 

Copper, and ir..n, .md its coal 
deposits are the best 

Litth ixvsil>ilitie> of this land was revealed to 

the : npv Its industrial resources were dimly 

guessed by the navigators who 4.irt-d its coasts and sent 
u-ir jut n>ns fabulous reports of the spontaneous 
products there abounding. 

The Peopling of North America 

The character of tin- men who undertake to develop the 
[>ossil>ilities of a count tant 

than the nature and extent^ tin-sources. Energy, America. 

initi dustry, are the tr.iit> tl 

<>!* a ti.i! ous Roo^vth. 

cal endowment can avail little if the inha! SwZL 

the land are so ignorant or so sluggish as to leave its re- i. ch. L 
sources unexploited. 

The Aborigines of North America, so far as hi >ws Fhkt, 

them i these essential ecoi. Mils. 

hawk Valley, . Cher- i. ch. 

okee> \ppalachians, as among the Pueblos of New 

o and Arizona, a considerable degree of industrial 

and social advancement had been attained before the com- 

TheZuftis were cultivating the soil Funnd. 
for corn and various vegetables and carrying on certain 
manufactures, such as pottery and it of 

ic form and color. A well-organized community life 
had been by the Pueblo Indians; 1 even 

here was the race endowment sufficient to enable the n 
peoples to hold their own when brought face to face 

>eans. The most civilized of all. the Aztecs of Old 
o, had hardly passed beyond the barbarous stage 

8 Industrial Histoiy of the I 'nit 


I, 49, 51, 76. 


Discovery of 
America, II, 
Ch. VIII. X. 

Spain in 
Ch.VI, VH. 

of evolution. The famous empire of Monte/uma was 
probably nothing more than a confedenu y of pueblos. 

Tin- industrial inefficiency of the aborigines WU evident 
from tlu- fact that in the rich fort-: lying bei 

the Atlantic coast and the Mississippi River less than one 
hundred and fifty thousand Indians found barely sutlu ient 
sustenance. The same area now supports sixty million 
whites, every one of whom has an ampler and more con- 
stant food supply than any Indian brave could count on. 

The occupation of this continent by I 
the immediate substitution of i i\ ili/.ation for barbarism 
and the rapid utilization of hitherto unexploited reaou 
The energy, the initiative, and the industry of civilized races 
were brought to bear upon a virgin continent. This com- 
bination of industrial efficiency with natural resources of 
ordinary extent and variety has resulted in economic 
achievements unparalleled in the world's history. 

Spain was the first of the European nations upon the 
field, and hers was apparently the best chance of success. 
The Spanish explorers had hit upon the most immedi- 
ately profitable region of the New World. Columbus, 
sailing due west from the Canary Islands, came first 
upon the Bahamas. Later voyages brought him to one 
and another of the beautiful tropic islands of the Caribbean 
Sea, and these hospitable and fruitful lands furnished an 
lent base from which to explore the coasts of the ad- 
joining continent. In his fourth and last voyage Columbus 
skirted the Isthmus of Panama and got from the coast 
Indians reports of a rich and populous country back in the 
interior where manufactures and commerce were well 
developed. Twenty years later Corte"s set out upon ai 
pedition that resulted in the conquest o. Gua- 

temala, Honduras, Yucatan, and Nicaragua were soon 
added to the New World dominions of tin king of Spain. 
After several baffling failures, the Pi/arn>- ed in 

landing at Tumbez and soon an astute combination of 
diplomacy and force gave the " golden kingdom " into 
their hands. Columbus had found gold on Hispaniola 

o t TB 
AM ! CA 

<>1 I 111 I MM 

M : 

. . . : a 

ities that promised a follower! 

r at Potoat and Zacatecas in Mexico ; but all previous 
finds were outdone by the vandals who looted the treasures 
of the Incas. The ransom of Atahualpa was a roomful 
of gold vases whose total value is estimated at $15,000,000. 
Spanish galleons sailed back across the Atlantic, their 
holds stuffed with gold and silver, and Spanish sea captains 

ned home to live in luxury on their ill-won fortunes. 
s easily gotten wealth had a demoralizing influence. 
The energies of Spanish ad n were absorbed in the 

quest for gold, and no land seemed to them worthy of at- 
e promise of limitless treasure. The 
vast regions to the north of the Gulf of Mexico were ex- 
plored in vain. Ponce de Leon (1513) sought the fabled 
fountain of youth, while D'Ayllon (1526) and Gomez (1525) 
examined the Atlantic coast from Labrador la in 

quest of a passage to the Indies less circuitous than that 

rsed by Magellan. N - nor a direct 

a rewarded their toils, and the country 

looked for to eyes wonted to a tropical velvet./ 

Peter Martyr d'Anghiera, the friend of Columbus, cora- 

disappro >n Gomez' enterprise, wrote: 

the 3out South for the great and exceeding 

> of the Equinoctiall : they that seek riches must not 
go into the cold and frozen North. " 

Later expeditions into the interior discovered no El 
Dorado. Pineda sailed up the Missis- cr (1519) 

and saw Indians wearing gold ornaments. Narvaez (1525) 
and De Soto (1530-1542) in turn perished in the pursuit 
of a kingdom thai as well worth the plundering 

as Peru. The survivors of Narva t ted exped 

forced their way across the plains of Texas, up th 
Grande, and over tin i -to Culiacan, the northern- 

an conquest. From Culiacan 

rt out to fm,l the M-vrn i ibola 

.m<l treasures, 1 ^9) pene- 

.is far as the Xuni pueblos of New Mexico. 

IO Industrial History of tJtc United States 

New France 
and New 



of the West, 

I't. I. 

France in 

Ch. IV, V. 



Coronado's expedition (1540-1542) pu-hed farther north 
to a fork of tin- Platte Kivrr. but only scjiKilid Indian 
villages rewarded his heroic endeavor, i . i -nturirs 

thereafter all attempt to develop tin- Spani-h dominions 
north of the thirty-first parallel .indoned. 

France. The papal bull that assumed to divide- the 
World between Spain and Portugal was challenged 
by Francis I, the dramatic king of France. It i- -aid that 
he sent a saucy message to Charles V, asking him by what 
right he and the king of Portugal had undertaken to mo- 
nopolize the round earth. The authority of the Holy See 

: K-d but lightly upon sixteenth century Frenchmen, 
and they determined to have their share in the exploitation 
of America. They sought their treasure in the sea. As 
early as 1504 fishing smacks from Hrittany and Normandy 
found their way to the shoals off Newfoundland, and by 
1578 France had as large a fishing fleet in these watt 

. and Portugal combined. These sturdy fishermen 
established France's claim to littoral rights on the adjoin- 
ing shores a claim that has vexed the souls of diplomats 
to this day. In 1524 Verrazano, an Italian adventurer 
in command of a French corsair, explored the Atlantic 
coast from Cape Fear north to the Gulf of St. Lawn 
Ten years later Jacques Carder followed up the great river 
as far as Montreal and founded the claim of France to that 
section of the New World. The first attempts at settle- 
ment were made farther south and well within Spanish 

:ory, but the unhappy fate of the- Huguenot colonies 
at Port Royal and Fort Caroline determined the limits 
of French adventure. Thereafter explorers from France 

content to follow the lead of the St. e. They 

soon came upon that wonderful chain of inland seas, and 

followed their lead to the heart of the continent. Cham- 

plain, who traversed (1615) Lakes Huron and ( )ntario with 

an Indian war party, thought he- had discovered the North- 

-age and the long-ought route to the Indies. 

adventurers found a more- important trade route, 

the great river that connects the lake region with the Gulf 


ladeo . N rcachf. conrin Rim, 

paddled up ihe J-o* and dowD 

Industrial ///story of the I 




of th, 


d "ii in the p. .in! where 

\rkansas flow^ in from tlu- | ,< l.nally 

reached the mouth nf tlu- \ inSj) and claimed 

thr \a>t drainage i ! In hoimr .rand 

Monarnuc thi> >plcndid acquisition ana. 

Neither gold mines nor the Northwest Passage n -wardrd 
the zeal of tlu- 1'mu h explorers. Th- ' told ,,f 

nt" pure copp>er cropping to tlu- -nil',. 
Superior, but mines could not profitably IK- worked for 

Of labor. The oat :llcd hunt* 

and fortunes might he made- in tlu- fur trade, and all the 
jka of the French ^o\'ernment wen- lent toward the 
of this ])romisin^ traffic l:,;'iin^ j)OSts 
established wherever a river or an Indian trail 
access to the hunting grounds forts were built at 
point >ns rose beside them, and the Indian tribes 

held in a diplomatic alternation of bullets 

and the gospel. The char <>rest 

settleir.e; ' he soldier, the fur trader, and the p- 

The I ' kinj new channels 

of tradi-. Making their way up the rivers that flow into 
the V ,i, they succeeded in monopolizing the traffic 

in peltrie- over the vast valley lying between the Alle- 
ghanies and the Rocky Mountain-. It wa< a I : 
trader. La \*erendrye, who crossed the watershed bet 
Lake Superior and the upper Missouri (ly.^S), and hi.- 
!it tlu- first glimpse of tlu- range, the ] 

of the Big Horn Mountains full x-venty-five years before 

lition of ! d Clark. 

The French settlerm determined by considera- 

tions transportation. Quebec and Montreal 

ol of the St. Law:- I>etroit, 

;ac, and St. Mar< ranees to 

the Great Lakes; <-d beside the lir-t 

best trade route to tlu- :-mi- 

ppCT Ohio; X'incenne-. the \Vaiia-h: Fort 
he Illinois. Traffic on th( Mi-i --:|-|' : 
equally well protect 1 lOttS. Mobile 

Tht Land and tk* Profit 13 

(1701) and New Orleans (1721) were founded on the Gulf 
coast in defiance of Spanish preoccupation. 

i* was outlined a n.l <juitc worthy of the 

anil.;- .;: \I\ I ourage, <! self- 

sacrifi into the effort to establish the claim of 

Fran* it the enter- 

prise ended in failure and loss. The French domain was 

ed because the I rm. h i >.l<>!iies had no lasting in- 

ial basi* ike root 

because neither soldier. priest, nor toyageur had a life 
inten>t in the countr bearing animals 

were killed of! and the Indian trilxrs had retreated into 
he mission trading post dwindled into in- 
significance. Only along the St. Lawrence, where agri- 
cultural colonies were planted, did the French secure a Does. Col 
permanent hold upon the region opened up by their ex 
plorcrs. To Sir John Hawkin^. wfc 

>5 and found the colonists starving in the mid 

-.-, the difficulty was ev vithstanding 

the great want that the French had, the ground doth yedd 

.ils suffu 1 have taken paines to get 

the same ; Uit they being souldiers, desired to live by the 
sweat of other men's browes," 

Great Britain. Kngland's right to a share in North Fbke. 

ica rested upon the exploring expeditions sent out ( ^ ' - 1 
VII. John and Sebastian Cabot (1497-1498) Ncfehton, 

d the coast from Cape Breton to Cape Hattera> *>. L 

laid claim to the territory in the name .iggardly 

monarch who financed the expxxiition. The opening was 
little prized at the time and not immedi. .wed up, 

for the region seemed unpronuV gold mines were 

discovered, and nature was far less kind than in the tropic 
islands farther south. There was no lack of adventurous 
mariners in sixteenth century England, but the nation's 
energies were absorbed in a life and death struggle with 
Spain ^h sea captains found more honor and profit 

in sacking the rich towns of the Span i ml pillaging 

the treasure ships on their homeward voyages, thai 

14 Industrial History of the United States 



I \iynr. 

Voyage* of 



. \nu-riian 
I. I': I. 

Narr. and 

(Vit I 

Ill.Ch. IV. 

in America, 
Ch. I, II 

Lost Colony 

of Koanokc. 

exploration along the- bleak Atlantir OOMt 5Td credit 
for the first important discovcrio in tin- north Pacific 
belongs to England. Sir Francis Drake 11577 . 
sailed through the Straits of Magellan and up tin 
Coast of Smith Amerua. \\hcre he plundered the Spani.-h 
ports and the galleon- on their way home from I't-ru. 
Not wi>hing t ri-k his booty by returning through Spanish 
, he sailed on up tin- ;hr northrrn continent 

to the forty-third parallel and tlu-n ic Pacific and 

Indian oceans, around the Cape of Good Hope, and so 
home to Plymouth harbor. 

Drake was the fir-t navigator to " put a girdle around 
the earth," but he had no thought of colonies. The tir>t 
attempt to settle the British jxjssessions in Ann-rid 
made by the brave and knightly Sir Humphrey C.ilbert. 
Obtaining the queen's commission, he sailed directly across 
the Atlantic and landed somewhere on the coast of N 
fottndland in June, 1583. The season was delightful, and 
raised false hopes of success, but winter brought cold and 
tempests such as these Englishmen had never experienced, 
and the enterprise was abandoned. On the homeward 
voyage Gilbert's ship, the Squirrel, went down with all 
on board. His younger half-brother, Sir Walter Ralegh, 
succeeded to his commission and his task. Ralegh 
the son of an English sea captain. While -till a student 
at Oxford he conned with Hakluyt, compiler of " The 
Voyages and Discoveries of the Kngli>h Nation," the per- 
plexing maps of the New World and read all the narr : 
of the explorers then available. Student tlumgh hr 
and courtier, he was a man of action as well. Consumed 
by the passionate desire to secure for England her due 
share in the wealth of the New World, he Maked fame and 
fortune, life itself, on the undertaking. Three separate 
expeditioi reat patriot sent out at his own ch 

Forty thousand pound- --nt in the endeavor to plant 

an English colony at Roanoke Island (1585-1589), but 
a series of unavoidable mi-fort une- thwarted the enter- 
prise. On the accession of James I, Ralegh was thrown 

7V/< .IM</ t/tf PeopU 15 

into thr rower, 'lu-rc he wis finally beheaded; but his 

the ultimate realiza- 

lira :n ' is devoted service 

had v. 1 sh.tll yet live t<> see it an 

gh's colonies failed, and 
f discovering an El Dorado on the Orinoco came 
to na 1 orations undertaken at his expense re- 

claim to the territory south of Cape 
indicated the most favorable lot. 
future endea 

The physical condition- of the Atlantic coast were highly 
favorable to colon tin- Hr 

possessions lay directly across the sea ymouth 

he Cimji: -ury 

>h sea captains had i- he Spanish route and 

steered south to the Canaries, then due west to the Antilles, 
ami them i- nrth to Cape Fear. Ralegh's costly expe- 
is made i In 1602 Barthol- 

omew Gosnold, one of Ralegh's associates, ventured to 
sail straight across the Atlantic and came, happily, upon 
Massachusetts Bay. This a proved that England 

unisand D .rer to her American provinces 

thereafter the direct route was 
usually followed. The M rip of coast open to British e 
prise was, more> .iarly accessible from the sea. Sempfe, 

ic series of rivers the C *. the Hudson, the ^ n 

Delaware, the Su- James 

take their rise in the \ji highlands and, being 

navigable for <mall boats well-nigh to their sources, proved 
as serviceable to explorers and pioneers as so many mac- 
adami/ed ro.ul^. 

The first successful English settU-n (Stown, was Fbke. 

made on TV of the wonderful bay that Ralegh ^ ; ^ V l 

had divined to be an open highway to the wealth \dfhbon. 

.'.Nihility of an agru'iiltural x'ttlenu-nt once !.<-' 

h colony 

o, Salem in 1628, Boston in the year 
1630 to 1640 no year passed but saw 

1 6 Industrial History of the T;//A , 

some shipload of colonists leave Bristol or Plymouth or 
London bound for America. No harbor or inlet or river 
in his Majesty's plantations but was explored by 
brave home seel |o there were i 

thousand settles in New Lngland alone and perhap 
as many more in Virginia. I Hiring the next t \\vnty 
the Puritans stayed at home an.l the i 

;id a refuse in Virginia, but th 

the migration of another crop of traitor- and malcoi ' 
Oglethorpe's colony in G (1732) attracted poor 

debtors and other unfortunates from Kurope as well as 
from the British Isles. 

Scattered along the roast from IVina|uid to Savannah. 
rarely venturing inland beyond reach of navigable 
divided from the interior of the continent by a discourag- 
ing mountain barrier, settlers in the KnghVh provinces 
were forced to make tin- most of the land within 

h. Geographic conditions favored the formation of 
compact communities. The lands available for -cttle 
Somple, ment were in a narrow strip of territory rising from i 

ie foothills of the Appalachian range. The northern- 
most third, since it is largely mountainous, offered tin- 
least attraction to colonists. Southward the lowlands 
broaden to a tract of three hundred miles width. Geo- 
logically this lowland is divided between coastal plain and 
Piedmont plateau. The coastal plain i- the am ic 
beach lifted a few feet above the level of the tide. T > 
the north it is represented by detached areas Cape Cod, 
Xantucket, Martha's Vineyard, Long Island, Xew Jeresy, 
and Delaware. To the south it becomes the dominant 
physical feature. Pine barrens cover its undulating 1< 
but in the river bottoms the original sand and gravel are 
covered with alluvial deposit. Near the sea the land oozes 

y into swamp and morass, heavily wooded with cypress 
and live oak, and along t : rolina < 

bayous and open sounds divide the mainland from a 
of shifting sand dunes that form the outer boundary. 
The lands of the coastal plain throughout v. 

The I 


G the .i.i man \\ 

ard woods. . 

linuni indicates the drop fn 

' -*"~- \ \ ., 

o r\J ^^ 


: I \ N I \i M 




irks ilu- hrad of navigable^ 

till the 

mds was exhausted. i . 

.ind. -Of the maritime . ;K\ the Tbelhrtdi 

lie lea-t 'lit their ^2? 

re largely absorbed in developing their trade 


1 8 Industrial History of the 



Mom. Hist. 


intrrrsts in the Orient. The commercial opportunities 
of the western contine-nt \\ere brought to tin- attention 
of the merchant- of Am-terdam by the voyage of II 
Hudson (1609). Com: i by the hutch Ka-t India 

Company to seek out the ever ; Passage, 

he came upon a wonderful harbor and a river, up whi< h 
he sailed one hundred and fifty miles before coming upon 
shoal water. The Indian- proving friendly and r< 
to exchange valuable furs for the merest bauble-, the 
merchants of Amsterdam fitted out a trading ship, and in 
good time she returned with a profitable cargo. A fortified 
trading post was built on Ca-tlc- Inland ju.-t below Alb 
another on Manhattan at the mouth of the river, and a 
third on the Delaware. In 1621 the West India Company 
was chartered and given monopoly of commerce with the 
\Ve>t Indies, Africa, and the American coast, and full 
authority to plant colonies in Xew Xetherland. The 
Company's trading posts gave access to rich hunting 
grounds, and a brisk commerce in furs developed. Soon 
an annual harvest of sixty-six thousand skins wa- >ent over 
to the furriers of fashionable Kurope. Other opportunities 
of wealth were improved by the doughty I hitchnu-n. The 
treasure ships of Spain were lawful booty, and slave> 
ht on the Gold Coast of Africa might be sold in tin- 
West Indies for many times their purchase price. 

The West India Company grew rich apace, but their 
colonies did not prosper. The inhabitant- Am- 

sterdam were mere servants of the Company, among whom 
were few genuine settlers. The agricultural communities 
along the Hudson, made up of feudal dependent- of the 
"patroons," were discontented and eager to change- ma 
Holland's New World possessions were far more jn mi-ing 
than England's, not for commerce only, but for agriculture 
and manufactures. The Dutch settler- had a more genial 
climate and a more fertile soil than their neighbor- to t he- 
eastward, their forests furnished the- best of timber, 
and their rivers afforded unexcelled water power; but in- 
dustry languished because the fruits of labor, the surplus 

The /..- 19 

.iiul mill, were claimed by the 
home K it ji\t-n the 

land. The fact th< States-General sent them g 

garrisons <li<l nt inu. when the oppor- 

tumt . . land .-. .ne was withheld, and 

.ined as rned how the English villages 

a came about that v 
I the commercial ascendancy 
sent a fleet to captun iing i*'-t in America, 

was no serious resistance, am! t i was 

\ v.i tl lout firing 

<:.< r < : rs began to j 

MI the Knulish colonio north and south am! : 

jH>|)ul.ii the 

was sevt; hundred. It had 

he Swedish > the 

Delav uinbed as readily to Ki.jli-h influence. 

litl (ireat Hritain ajuire titl \llantic coast 


The Final Victory of the English. Once rooted in a soil Bancroft. 

MI. thr 1 'Ionics grew with j 1 ;' ; ; 

amazing r.i;> itury sutc* 

1 sixty thousand of the kind's iv. 117-130 
subjt. -aw the number 

illion S4>i: States census D 

1 a jM>j)u hundred 

ami tml persons of European de>< 

Fully on< e jn-ople spoke some .ther language 

and probably not more than half were of 
\onblood. Then n unities along 

Mvedish along the 

Delaware, Italians and Salzburgers and French in Georgia, 

n t he coast towns, 
k, and Char;- 
re the domin.'.- :it was ol 

to social 

nduxtrialconditi..- liritish I- '-religious 

;H)litical tyranny nj the ('.inmonwealth, no less than 

2O Industrial History of the I '>. 

that of the Stuarts, drove thinking men to seek o])portunit y 

rk out their own conviction- in a land \\here thru 
in-itluT priest nor king. The agricultural revolution con- 
sequent on tin- conversion of tilled lands into -her]) pa-tiire 
threw thousands of nu-n out of employment The p 
farmers lost their holdings, the agricultural lahi.: 
no longer needed, and mry Knglain: 

unable to maintain her sons. The surplus population 
turned to the New World, where land wafl to he had for 
.-king. Most of the men who crossed the Atlantic 
in Knglish vessels were not priests, soldiers, trapper-, gold 
seekers, but men lred to the cultivation of the soil. They 
brought their wives and children with them and purposed 
to found homes in America, and they had sober ideas con- 
cerning the necessity of earning their bread by hard v.ork. 
The land open to Knglish settlement contained no h. 
of gold and silver, but it proved to have source- of wealth 
no less remunerative in the long run. Fur-bearing animals 
abundant, and forests of pine and oak yielded naval 
stores that brought a good price in Old World mar 
The sea teemed with edible fish, oysters, and lobsters. 
Captain John Smith, who explored the New Kngland coast 
in 1614 and wrote a rose-colored account of its p<> ibi 
prophesied, and truly, that the cod n-herie- of the north 
Atlantic would profit this country more than the bot mines 
the king of Spain possessed. Soil and climate were suited 
to the growing of familiar European cereal- , and new 
products, such as maize, potatoes, and tobacco, were des- 
tined to become a prolific source of wealth. 

Four European nations laid claim to the territory now 
included in the United States, and each attempted to secure 
its title by planting colonies and providing for military 
defense. We have seen how Holland Nether- 

land through failure to plant free agricultural rol 
France m. ;iious effort to hold her New World terri- 

tory, calling in the Indians to defend he y peopled 

outposts; but in i;r ndcr her 

claim to the eastern half of the M pi Valley, and 

Th* Land an.t ///< PtofU 21 

Santa Fc. Missions had been bu and the 

c races were Catholic church, but 

11 noble riven, 

vast forests, and a soil unsurpassed fr fertility, but Span- 
ish adventurers had not patience to undertake the develop- 
region so barren of immediate gain. Castefiada, 
Coronado's unhu ., had no 

hope of success in tin- Mississippi Valley, " because that 
ry is full of bogs and poisonous fruits, 
and the \ t count? wanned by the sun." 

By a series of treat 1 States has secured Spain's 

rth Ami-rica the Floridas in 1819, Texas 
izona, and California in 1848. 
the scene, with apparently 

most in. iterprise, was 

l.twl from tlu Atlantic to 
Great Lakes. 

bean Sea, thr Isthmus of 

Panama, and the Spa iiuily come under 

( ) t-nipirr. discovered by Magellan 

and maintained by priests and soldiers for near four hundred 

years, toppled at a blow, and Spain was obliged at last 

i .pines to her vigorous rivaL 

LA SALUL'S SUIT, "Tux. Gaimx' 





X, S 8. 


Old Virginia 
and Her 

A Discourse 





Contemporary Estimates of the possibilities of the 
British possessions in America were colored, naturally 
enough, by Spanish experience. Tin- fir>t explorer- >ent. 

home exaggerated reports of what they saw and heard. 
Verrazano asserted that gold, silver, and copper abounded 
on the Carolina coast, and Jacques ('artier gave a no 
hopeful account of the St. Lawrence country. Jean Ri- 
bault, commandant of the Huguenot colony at Port Royal, 
observed that the natives wore ornaments made of the 
precious metals and argued that the mines could not be 
far away. John Sparke, the chronicler of Hawkins's 
second voyage, shrewdly suspected that the Indians had 
filched their gold and silver from the wreck of Spani-h 
treasure ships cast upon this stormy coast; neverth- 
he believed that back in the interior " where are high hilles, 
may be golde and silver as well as in Mexico because it is 
all one maine." 

As the country became better known, soberer opinions 
prevailed. Men began to reali/e that the great advai 
of the Xew World possessions lay in the fact that America 
was a virgin continent where land was to be had in limit- 
less tracts and where there was no immediate fear of a 
diminishing return from the soil. In " Western Planting, " 
a -hrewd e-timate of the possibilities of America written 
by Hakluyt, we find set forth the economic advantage that 
would accrue to Great Britain from the planting of col 
across the sea. Such enterprises would serve to drain off 
the surplus population of the mother country. Thousands 
of able-bodied men, yeomen, and artisans, for whom there 

The />.-. isation 23 

was i. . MM- i it at ho: America op- 

mi an honot h colonies would, 

uiniish a new mark ' \\z\\J\ manuf.u lures, 

;>hing for lack of purchasers. It was 

hoped that even the savages would develop a taste for Voy. 
n increase the demand for woolen 

In ex- 
change for her surplus man -, the colonists * 

Kngland commodities of v. govern- 

stood greatly in need for the maintenance of the navy, 
as masts and spars, tar and pitch, cordage and i 
. r ami pitih had hitherto t>een ini|H.rti-d from Russia 
1'oland. tl . the copper 

me artii les could l>e had from Ann 
at half tlu- price because tin- >upply \va> limitless, and be- 
cause in trade wit 1 

of thr ill-some exactions sulu-n-d in tlu- dominiiins of 
the ( mtcrcd by 1> ders 

in hostile Spa: aid give 

vessels, forced - 

d to 

anu-M \\! icrs, 

they could i llu- British flag. 

What was to be di : 

nage duties wouM. imri-tvcr. accrue to his Majt- 

The Financing of the Colonies 

The Chartered Companies. -So these Bro. 

t was urged to apj 

Tccjuipp 'iiial venture >n ti. 1 that 

it was more h that the >tatc should back such an 

enterprise than surren.ler it t-> pr No {| f ^ 

fund was v. d at the reque- 

::nn and hearty 1 !uyt 

amor.. ;ml>er. t! intrustctl the undertaking 

(ifex it ^t... N companies chartered for that 

purpose. i Company was assigned the region 

24 Industrial I listen 

; Mil 

I.I!, .1 . 

Ch.irtrr- ..f 



Genesis of 



465.469; II, 

lyiiu' :i tin- thirty fourth and tin- tliir 

parallels, and tin- IM\ mouth ( between the 

: and tin- forty- fifth. Tin- region ii : 
was open <>ni/.ation on the part of cither . 

pany or by other ( i adventure hartcrs (1609 

and 1612) vested in tin- i the .^uvi-rn 

ment of such colonies as they >hould e-tablish and tin- 
monopoly of trade between the colonNt> and the mother 
country. The money necessary to fit out a colonial ex- 
pedition to transport colonists and provide the food and 
clothing for their maintenance during the initial years 
-ecured by sale of -tock. Kadi subscriber received 
a "bill of adventure," which entitled him to a shai 
the profits of the enterprise. It soon became evident that 
no dividends were forthcoming, but subscriptions were 
none the less urged on grounds of public expediency. The 
planting of colonies in America came to be considered a 
patriotic obligation. The clergy were enjoined to urge 
it upon their congregations as a Christian duty, and 
loth opened in this interest. One hundred mem- 

louse of Commons took stock in the London 
Company, subscribing from 37 los. to 75 each. The 
wealthy citizens of Dover and Sandwich contributed 
liberally to this faraway venture, and, in response to tin- 
request of the lord mayor, the trade guild> < >t K< >nd< >n < >; 
their coffers and gave 5000 toward the founding of an 

'ish colony g\ 

The sending of colonists to America was undertaken 
on a purely business basis. The initial expenses 
great, but it was hoped that the ultimate profit to tin- 
adventurers in the way of dividends and to the country 
as a whole by the beneficial effects of colonial trade would 
bring full compensation. The capital accumulated by 
tin- corporation wa- invented in ^upplie- -icultural 

impl< nd Imr-es and food to last the 

colonists until the fir^t har t Kor a term of from five 
to seven years the sup: treated as a common 

from which the needs of the " planters " men, women, 


bodied man was 
capacity at the task ataignrd 1. 

<>r at car ^ or 


:irst houses put up were 

used by all in and the first boats built In-longed 

ich colony was expected to send 
to the representatives of the 
in I-'.ngL. 

I .imestown, the first enterprise of the London Com- Ffake. 
a magazine, was erecti ising the j ; 

I a "ca; ' was appointed 

to m ! di>lril>i I hi- \\a- 

ssful, because > Oiffood. 

iu-n will put forth tlu-ir U '^j 

their needs arc nu-t our i.lic fund and tht-y realize 

-ntage from indi\ D Brown. 

>ts shirks 1 tlu-ir tasks, and, the supplies being soon 
d, Captain Smith was forced to annouruc that 

:n his share of the work or be ex- 1. 71.401- 
.1 from t! MI- that yathrn-th not 

day as much as I do, tin m -\t day. -hall be set be- Works of 

i- or starve." Ar r 8^-174, 

returned .ml (1609), thi- re neglected, 

tin- . AM! for t 

r> !. r 

h fresh supplies and ade< : 

thorr imestown settlrnu-nt would have nu-t tin- 

fate of R Thomas Dale, who was sent out by 

ompany in 1611. n a better footing by Bctt. 

atmigning to ea- ce of garden land 

use. Thereafter thm- \\a> no .litViculty in inducing the 

n to till the soil t>n their own account, but the re- Merchant, 
(juin uld lal>. nth out of c 

year for t 1 was grudgingly obeyed. So eager 

urn out: that 

red Captain Newport, when he sailed for Virginia 

26 Industrial J . f the ( 'in!, 

in iooS. to bring back a cargo of products worth 2000 
(the cost <>f this second supply) and intimated that, if 
profits were not soon reali/cd. the <>uld he aban- 

doned, since tin- discouraged stocklmld. .vithdraw- 

: heir pledges. Newport carried with him ei-ht -killed 
arti-an>. and these men got to.m-th. r, pitih. 

and iron ore. These commodi t '. her with clapboards 

cut hy the colonists " for thci; at lei>ure times," 

made uj> the first return rom Virginia. 

The colony sent to Sagadahoc on the Kennehec River 
by the Plymouth Company, in 1606, set out under hrilliant 
auspices. It was planned hy Lord John Popham, Chief 
III. 175 r land, and officered hy his hrother, (It- 

Qoood, ham, and his nephew, Ralegh (iilhert. The rank and 

I, 34-44- j]] t . ,,f the settlers, however, were rough, wild fellows picked 
up in the seaports, who had little ahility and le inclina- 
tion for hard work. The summer season V 'ed in 
exploring expeditions, and the friend-hip of the Indians 
forfeited through wanton cruelty. Winter found the 
colonists unprepared, and they could get neither corn nor 
furs from the outraged natives. Popham died, and the 
colony was so reduced by disease and starvation that, 
when the supply ship arrived in the >pring, the men would 
hear of nothing hut immediate return to England. They 
carried home an evil report of the land where they had 
suffered so much hardship, and the Plymouth Company, 
disheartened by this costly experiment, planted no more 
colonies at its own expense. 

These failures on the part of the chartered romp;. 
are not to 1- ed. The FnglMi settlem. 

have been mere trading posts dependent on the good will 
of a merchant company like the Dutch colonies on the 
Hudson, but for the fortunate circumstance that th- 
ventures were unsuccessful and returned no profit on the 
investment. The stockholders became di- i. the 

managers got into trouble with the government, and the 
charters were withdrawn, that of the London Company in 
1624, that of the Council for New Kngland eh after. 

/.':. // 

Associations of Adventurers. Later colonies 

were Oood. 

financed ssociations, each of which secured 

a cha to a deli and 

:ess adequate political con; 
ccssful N 
domu: mpany was made by a group 

paratists who, finding the I-.n-landof James I a difficult 
place to establish a go\ :e to 

their liking in the NY\\ \Y..rId. The >r\c-nty !.<-; 

' i.mts >\ ho financed this enterprise subscribed 10 
each and made car n for a money return. In 

urers and thi- pl.i d 

hi- (arties to heir s6-s. i6>- 

>ck & partnership togeather, y space of 7 years, I66f I76 " l?8 - 
during \xhii ! . are 

means of any person or 

persons remain*- -till in the comonestoi < planters 

were t -n good 

.is hoped that a con M< ! ru I c realized, sutn. 

tin n from the profits of trade. I. M-JS- 

was hardly more 
than no 

. agabond ^entlrn 

that did : al jain. In 1624 

the st sabandf one 

acre* .ii;ht " x-t o>rn for his n \\n p.^ 

i as plt-n- 

rs wanted marki-taMr pm.: . xactions 

I so a in t the agreement 

was dissol underto*- up 

-ts of the st<H-kh< ^oo to be paid in 

200 each. Certain lead: 


i* responsil'k- for tin- fulnlliiu-!.- :je. 

In the ia>e of the Mas>. Bay Colnny. the ad- Oood. 

vrntur rica, cam-in u their charter 

xxith them, and thus the association became identified xvith 

28 Industrial ///v/< n 

i XII 

Land System 
of New 


1 ' < : U entitled t<> ;i VO* 

tlu- management of the compai .1 attended in 

person t! ...Iders' meeting, knoun .1- the ( .cneral 

Court, until tin- increa>e in the number of settlements 
necessitated the election of representatives. Tin- (1 
secured a grant of land extending from the Mcrrimac 
r to the Plymouth line, and Within 

this territory new colonies were planted from time to 

ands granted free of charge by the (ieneral Court. 
Newbuiy, Charle>to\vn, I)edham, and the Con- 
fix er .owns. Hadlev, Hat field, and Xorthamplon, 
were offshoots from the parent colony and followed 
in turn the same general plan. The settlers joined f. 
for the prosecution of undertaking that were too great 
for individual initiative, such as the clearing of the f' 
the cultivation of the I . the putting up of houses, 

B, fences, sawmills, gristmills, etc., and as soon as 
icable each of the proprietors in the common lands 
assigned his portion and proceeded to cultivate on his 
own account. This was not communism but cooperation. 
idence Plantations and the Connecticut towns were 
also independent ventures financed by the planters them- 
selves. Being under no obligation to pay tribute to a body 
of adventurers in England, the colonies grew rapidly in 
population and wealth. By 1700 New England, de 
her natural disadvantages, was the most densely settled 
province in America. 

Proprietary Grants. It was not unusual for private 
persons with sufficient means to secure a grant of land and 
undertake the planting of a colony as one might set about 
the cultivation of a distant CM ^\\ colonial enter- 

prises were feudal in character. The underta! 1 the 

land and met the expenses of the shiploads of lab 
out to develop its resources and was. in consequence, 
entitled to whatever revenues in the way of r< 
receipts from mines or from customs duties might a< 

Sir Fernando Gorges, a friend of Sir Walter Ralegh, 
despairing of success through company management 


Mason, another 'member of the 
he Laconia grant < i -cstowed 

n these gentlemen the plant settle- Amtifca. 

^ ami the monopoly of fisheries and trade. A fishing *-"* ** 

n was established at the mouth of the Piscataqua 

r, and salt works were there set up. Salt, dried fish, oaod. 

-ecurcti in trade with the Indians, clapboards ami 

pipestavcs, made up the returns from this \< l>ut 

the cost of maintaining the colony exceeded -me. 

were fishmongers from Billingsgate 

d at extreme rates/' a thriftless and lawless crew, 

\\ ho , .\ atfantly and worked only under .mpulsioo. 

i he grant was Gorges acquiring control 

seen the Piscataqua and t rbec 

! <>rd Proprietor of Maine, and the lands 

cat aqua being awarded to Mason. N ei t hi r 

h toward the actual c< 

In !'; the first Lord Baltimore, who as member of Wimor. 
the Lond. had made a futile attempt to found 

a colony in \ 
making him sole prop: lying between m s: s*s- 

- th parallel. His son 

ccetled to the title that same year and became 
irvland. Twenty gentlemen and 
!>oring men, v. d with pruvisimis. i i \ 

undertot)k t! :nent in 1633. Lord Bait xm 

to the welfare of his colony and 
20,000 out of his own pur r warding 

i mate was genial and the soil ruh. The T 
soon able to send corn to inland Chvn.vni 

^e for sal' 1 the hogs and cattle procured 



. Quaker^ iissentcrs, for whom there 

was no place in Old or New England, and the colony was 
1 by self ;ig emigrants. 

3O Industrial History 


Narr. and 


and 11 


Narr. and 

III. 421-422. 








Crit. Hist. 


A batch of proprirtarits dales from tin- Restoration. 
Charles II was bent <>n a erting tlie r>yal prrr >LMt i\ e 
not only in England but in America a> well. The unclaimed 
territory afforded opportunity for rewarding hi- friends 
and supporters, and he gave out patents \\ith a laviMi 
hand. 'I'he roast country south of Virginia to the twenty- 
ninth parallel was granted to a group of Inyal noblemen, 
the Marl of Clarendon, the I)uke of Albemarle, Lord John 
Berkeley, Sir William Berkeley, Sir John Carteret. and 
others (1668). These gentlemen, with the assistance of 
John Locke, the philosopher, proceeded to draw up a 
feudal form of government for the Carolina* while promis- 
ing liberal terms in the way of lands, trade privil- 
and religious freedom to voluntary immigrants. Some 
persecuted Quakers did indeed move across the Virginia 
boundary, and enterprising Vankees from Ma>sachi 
came down to prosecute trade, but the government of 
the proprietors was so tyrannical and inefficient that there 
was no security for life or property. The Carol inas did 
not prosper until a stable crown government was estab- 
lished (1720). 

In 1664 England's shadowy title to the Hudson River 
territory was vested in the Duke of York by charter from 
the king. The fleet sent to besiege New Amsterdam had 
little difficulty in enforcing the claim, and New Xetlu rland 
became New York. Nicolls, the governor, sent out to 
represent the royal proprietor, made inquiry into the laws 
that had been adopted by the New Midland colonists 
modeled his government thereon. The Dutch sett NTS 
were glad to remain under the liberal English rule, and ( '< n- 
necticut farmers came in to take up the fruitful lands on 
Long Island. 

The fertile stretch of territory between the Del'. 
River and the sea, the Duke of York sold (1664) to his 
friends, Lord Berkeley and the Carterets. In the Jerseys, 
as in the Carolinas, the proprietor-, lacking funds with 
i to stock a colony, offered liberal terms to settlers 
who should meet their own expenses. The vacant land 


was quickly taken up l>y English. and Swedish 

itinori'/ o proprietorships, 

In i :ul wr>t -u the Delaware 1 

and between th 'y-second parallels was 

granted !.\ the s| K -ndthriit < h.i:i II satisfaction of 

Ailliam IVnn. thr Uuaker philanthropist. 

In this case the .-i JKT-.M to America. 

vi-ed i" a trade monopoly, considering the 
prosj thr iol.,ny more important than money 

gain. " I am day and night spent i , 

my money, ami am m>t a his great- 

I lad I sought greatness, I had stayed at home \ 1 1 

it. liberal laws, and full owner- BlMBt 

ship in the soil proved adequate inducements to immi- WfflUm 

therly I.o\e sprang up at the Pam - 

juiu ie Delaware ai ikill. a location selected wfanr. 

by th< us suital health and navi- Nmrr. and 

( \'-. U ~ 
y years later the j>art of Carolina that lies between uj, 476-40$. 

the Savannah and Altamaha ri\er-. having been sur- 

red to the Crown by the original pr llort 

y George I to a group of philant! who JJrr. 

proposed op|M)rtunity to ; debt to 

make a fr associates 

were constituted " trustees for establishing the colony of 
Geor: >r the conduct of 

its a: years. A corporation 

was organized for this latest colony, but 

with no thought of g stock was subscribed by 

's, and trade guilds, 

iment appropriated i' 10,000 toward the humane 

: i were br the ex- 

< of the corporation and provided for during the 

.irs until they had secured a firm footing. In 

i Georgia became a crown province. 

< success roprietary colonies varied with the 

wisdom and zeal of the persons responsible for their man- 

32 Industrial History of the United S: 

agement. These experiments, no less than tin chartered 
companies, proved that no money return could be ex- 
pected from American investments and that the . 
ntagcs to be derived from col< 

indirect. All the pn>; tho-e of the 

Penns and the- C'alvert- had lap.-ed to the- Crown t 
tin Revolution, and the several govern in ad- 

ministered by royal appoint ee- and a.--cml)lics represent- 
ing the interests of the coloni- 

I, 73-79- 


ry of 


Land Tenure 

The prime concern with the founders of a colony, whether 
chartered company, proprietor, or association of ad- 
venturer-, was to induce people to migrate to America; 
for without laborers nothing of commercial value could be 
produced. The managers of the several colonial enter- 
prises, however aristocratic their original plans, became 
convinced by actual experiment that it was good policy 
to put bona fide settlers in immediate possession of the 
land. Nothing short of actual ownership in the soil 
sufficed to attract and hold immigrants. 

In Virginia, for example, the purpose of the company 
to retain possession of the land and get it cultivated by 
laborers or tenants gave way before the necessity of 
ing the highest inducement to effective tillage. Sir Thomas 
Dale assigned a three-acre garden lot to each ot" the com- 
pany's servants and offered twelve acre- of uncleared land 
to all newcomers; but the cultivators remained mere- 
tenants at will. The House of Burgesses in its first session 
(1619) demanded that the colonists be put in full posses- 
sion of these lands, and that every r< hareholder be 
allotted one hundred acres in fee simple for each share 
(12 105.) he had contributed to the common stock, and 
this was conceded. Association- of adventurer- prop 
to go in person to Virginia secured grants of land from the 
London Company until 1624, and, after that " hot-bed 
of sedition" forfeited its charter and Virginia became a 

The /' / Colonisation 33 

royal province, from the Crown 

holder was entitled to one hundred acres in the first 

" division :ie hundred more when the grant had 

U-ell " sr.ited," thr-r MNCfetiaQI ainr ii.t<> DOtM lOO "I 

great tracts of land. John Mar f the first council- 

lors, who organized the compu; tin's 

Hundred James River, secured for himself and 

associates eighty thousand acres. Other grants hardly 
less extensive were assigned to the planters of Sir.. 
Hundred. Sotr idred, Bermuda Hundred, etc. 

vidual planters might increase their estates by the Bn* 
known as " head r > shareholder who " 8 

ost of /an able-bodied laborer, man or o*ood. 

woman, was < acres in the 

al in the see* < right was soon 

led to all residents of \ and became the usual 

nut hod of acquiring land. S ncharges Bovcricy. 

: to 6, the land came t more than a Hfctoryo* 

tig an acr- the im|x>rted laborer was usu- g^^** 

ally i. repay the passage 

a moderate <> u-r secured an estate 

and the hand* with wl it. Thr rii-t.m was ad- 

uited to a country \ as abundant 

and labor scarce, Imt it was susceptible of abuse. ' 

.l.'iis planters obtained grant > in Moderation of 
passage money paid for members of thdr families or for 

s to and from ! nd offices Bruce. 

rorrupt. and S4H>n it was not required to bring cvi- 1. 

issage paid. A small fee handed to the secretary 
insured the solicited grant with no questions asked. This 

m finally (1705) 

i ly law Fifty aa be had for five 

shillings, on mndit <1 three acres 

plant. c years and a number of cat tie 

:uant increase in the 

size of th p, In 1025 a sh.i was entitled 

n<lred acres and had cxp< of a second 

hundred. he dose of the century the average sue 



ss Aspects of Colonisation 3$ 

of a \ estate was seven hundred acres, and many 

a |> ned thousands. The king was recognized 

as the ultimate proprietor of all land- ^inia 

colony, an<l t < owners paid a quit rent of a 

4 was an imjxirtant source of revenue o 
iiaintained by the crown officers and as urgently 


ist to the land system nia was 

and colonies. The people who put their 

were credited 

I ach colon .an, Wotksof 

wom ild, free otizen or sen-ant, was entitled to 

;i io share of stock, and every shareholder received full 
possession of t res of land >ion 

was made At Salem e.i. h <>f the original settlers was 
entitled to a house lot in the village, ten acres of arable 
IKLsturagc an- neadows 

L The pro- aixi 

- Bay Colony agreed that every 
lurer who \\. there at 

his own charge, was t< icres for each passage 

paid. This provision did not lead to the building up of 
estates, as in \ . because the arable lands were 

d in area and there were always newo pro- 

Soil and climate, moreover, were not such as to 
rape farming on a large sea settlers preferred 

ear togetl ise lots were usually 

assigned along a >. round at the 

while the ar idow, and wood land was not 

1 until the community grew strong enough to build 
fences and to elds against Indian raids. 

In all the settlements made un<Ur the auspices of the 
Massachusetts It any this plan was followed, oood. 

h the size of the ts varied with the n 

of land at the disposal ..f the town and the numb* 

whom it w.i Settlers 

nle Islan- adopted 

planter- Kngland 

36 <;,// 

of / 

Doc. I! 


I, 104, 109, 
128. 129. 

ii. r- in. 

Ch. II. 

-mall farnuTs. dwelling near together in 
villages or towns, each possessing his land in fir -imple 
and cultivating it with his own hand-. !...< ;!: 
to meet local expenses were assessed by tin- town auth. i 
but nothing in tin- nature of fjiiitrent was required by the 
General Court. 

In the royal province of New York, tin- feudal form of 
land tenure introduced by the Dutch West India Com- 
pany influenced later development 

as Rennslacrvyck persisted under the English rule. Some 
of the royal governors granted trad- of hundred- of thou- 
sands of acres to favored individuals, and feudal properties 
like Livingston Manor were created. The pra. 
protested, since it seriously retarded the settlement of 
the province. " The Grantees themselves are not, nor never 
were in a Capacity to improve such large Tract-, and other 
People will not become their Vassals or Tenants for one 
great reason as peoples (the better sort especially) leaving 
their native Country, was to avoid the dependence on land- 
lords, and to enjoy lands in fee to descend to their posterity 
that their children may reap the benefit of their labor and 
Industry." The development of the province was retarded, 
since immigrants preferred going to Xew England, where 
lands might be had in fee simple and without cl: 
When, by the treaty of Fort Stanwix CiyoX), the Mohawk 
Valley was purchased of the Iroquois Confederacy, land 
offices were opened and farms were made over in fee simple 
to actual settlers on the easy condition that five acres out 
of fifty should be cleared within three years. 

The proprietors held their respective territories as so 
many feudal estates from which tl at liberty to 

grant, sell, or lease lands as might best suit their purposes. 
Even William Penn had in mind an aristocratic form of 
land tenure. He offered to sell five-tlmu-and-;. 
for 100, allowing fifty acre< fn-< ant imported, 

but reserved a quitrent of one shilling per hundred acres. 
A tract of five hundn .t warded to every man 

who should transport and " seat " his family at his owr 

ss Asftcts of Colonization 37 

charge. Here was tfrMfvfa n f opportunity for the 

trge estates, but here, as in Massachusetts and 
New \ >ns were not favorable to great \'" 

agriculture. Large tracts of land were bought 
ups of set t in . I ngtish, Welsh, or German, and then 
vided among the partners to the purchase. The 
was a series of agricultural communities of an es- 
pecially dem< |K\ 

- settlers, the proprietors of 

Nrseys offered to every man who, already equipped 

musket and ammunition and six months' provisions, 

shoul -ior on his arrival, one hundred and 

md, and a like amount for each st 
im|x>rted and similarly provided at his own expense, 
\vance f< n was s< -c acres. 

This . i the adjacent o>: DocLCoL 

.n." wr..: 1 of Hellomont. " will J^'* 

be such a fool as to become a base tenant * 701 . 


:rchase a good freehold in UK- Jn^eys? " jx.pu! ~ey was almost wholly 

1 farmer Lmilies, 

Sou 1 :.ison and line, lx>th physical con- 

s and the terms on which land Nvas granted tended to J : 
elop large estates. The soil of the coastal plain lay notation 
in broad fertile tracts, and the climate was suited to staple of Maryland 
crops, such as com, tobacco, rice, and cotton. There was 
derable economy in cultivation on a large scale, and 

er was at a disadvantage. In the Cond 

of Plantations (1636) Lord Baltimore offered each ad- 

-hould tran-- ITS a grant of one 

thousand acres in to a quit rent 

'.venture: a greater 

numl)cr of laborers, especially \\hei .rtiti- 

grants, so th.. rsc estates amounted to t 

:i thousand acres. 'I .tion of the proprietor 

38 Industrial History <>/ (lie I ';/// 

to create manor> the medieval type, i 

adventurer Miblct his lands to the men \vh<>m In- brought 

and the>e. like feudal dependents, paid rent in n. 
or j>roduce and presented themselve> at tin- call of the 
lord of the manor fully equipped with muskets, powder, 
and bullets for service again>t tin- Indians. Sixty 
manor> of three thousand acres each were established by 
1676. The proprietor also made provision lor p< 
farmers in freehold grant-. To any man who should meet 
the cost of transporting hi> family t M. inland was as- 
signed one hundred acres for him>elf. for his wife, and for 
servant imported, and fifty acres for ea< h child. 
Such freemen were to pay rent at the rate of u-n pounds 
of wheat for every fifty acres taken up. In the fertile- 
lowlands the great estate proved so profitable that farmers 
who took up land on these terms were crowded out. 

In the Great Deed of Grant issued by the proprietors 
of Carolina (1668) every freeman settling in the country 

offered one hundred acres for himself, his wife. 
child, and for every man-servant imported, and fifty 

ach woman servant, subject to a quitrent char: 
half-penny per acre. The philanthropic directors of the 
Georgia colony assigned to each settler brought over fifty 
acres of land and tools with which to cultivate it. In 
both of these colonies the intention of the projectors had 
been to induce farmers to take up the land in tracts com- 
mensurate with their working force. The influence of 
climate and agricultural conditions proved more potent 
than their carefully devised plans. The government was 
obliged to concede the Virginia method of acquiring land, 
and great estates secured by head right became the rule 
throughout the Southern colonies. 

The Colonists 

The subduing of the wilderness was no pastime. Stren- 
uous labor was required to fell the trees, plow lands 1 
with stumps and stones, protect growing crops against 

The Business Aspects of Colonisation 39 

weeds and call K . Imild houses and barns, cut roads through 
the forests, an- : iu against hostile 

Indians. Only men of strength, courage, and industry 
could succeed. 

sjx-ndthrift gentlemen who came to Jamestown 

arit ulture or of 

: USfful . to the 

prosaic task of pr :>od and shelter, and were in- 

fatuated with the hope of finding some easier road to fortune. 

was among them, says Captain John Smith, " no Work* of 
talke, no hope, n< hut dig gold, wash gold, refine 

load gold i 

ngiand was declared to be worthless, and the 
44 gold-showing t U- hills of common 

red day, it was not easy t induce the visionary adventurers 
to undertake useful :utile experi- 

MJ out men v. 
able and \\il. : ...r \\itli in. In 1610 Brown. 

>n Company 

HUM have at least I d 

and laborers adequate to this difficult business. 1. 410. 4j* 
but " 1 rj>enters, 

>miths, coopers, fishermen, 1 -vere 

ttfed IMyniout'' in thi-ir Bradford. 

1 1. ill' of tlu-ir numlKT duxl of cold and scurvy III> IJI< u 
th( >.rt adult im-n. \\ -priii^ cairn- they 

set al ! Imildinir houses 

\vrll providitl atrain^t tlu->rtond \\inti-r. 
tu- middle and artisan classes, 
I to \vrk. and. th.-iii'h they knew little of 
adily adapt -d themselves to the new 
v had come to America in no 

venture*-: and by religious 

ht their wives and children and 
household goods with full drtermii. build homes 

in the \ew \\ 

trikiim rontra-t t<> the sober industry of the Pil- 

4O Industrial History of the United S: 

grims and their eventual success showed the braggart 
' IIJ " ; thriftlessness of three neighboring settlement-. Thomas 
Predford, We.-ton. one of the merchant adventurers of the Council 
\ T ew England, equipped a colony on his own account, 
having secured a patent to land- in Ma-.-ac hu-c tt- Bay. 
A settlement \\a- attempted at Weymouth (1622), but 
the men sent over were an " unruly company " who " spent 
excessively " while the -hip's stores lasted and then begged 
and stole from the Indians until the exasperated savages 
determined to destroy the camp. The settlement was 
only saved from annihilation by Captain Miles Standi-h 
of Plymouth, who marched to Weymouth with his little- 
force, overawed the Indians, and enabled the disheartened 
lies to get away. Weston's colonists had laughed at 
the straits to which they saw the Pilgrims reduced, handi- 
capped as they were by women and children, and had 
boasted of their own advantage in being all lusty men. 
They did not understand how essential to a settlement was 
the steadying responsibility of the family claim. 
Bradford, Equally unfortunate was the enterprise of Robert Gor- 

178-184. g^ wno came to Weymouth in the following year. Sir 
ando sent his younger son clothed with reat authority. 
lie had received an extensive grant of land and the com- 
mission of governor-general for all New England, but a 
year's experience of the hardships of pioneer life di- 
Bradford, couraged this luxurious gentleman. " Not finding the 
283-292. state of things hear to answer his quallitie & condition." 
says Bradford, he returned to England in disgust. No 
less disheartening was the attempt of another repre- 
sentative of Sir Fernando, Thomas Morton " of Clifford's 
Inn, Gent." to found a colony at Mount Wolla-ton. His 
people were runaway servants and other ne'er-do 
who spent their time in drinking and riot to the- great an- 
noyance of the men of Plymouth. The merrymakers at 
Merrymount may not have been so disreputable a- t he- 
Pilgrim- believed, but their practice of selling rum and 
lima to the Indian- menaced the safety of all the 
neighboring settlements. Plymouth was constrained to 

<>* 4 ( 
end her little army and ' the growth of this 

.my dispersed. John White, WMu. 

Massachusetts Ba .t that such 

< .111,1 ungovernable persons, the very scum of the 

land, \M-re uniit instruments for the planting of a com- 


Lord Bacon, who was deeply interest! 'Ion Baow't 

ijjany's exper hoed thi* protest in his K>suy Wu ** 

s (1625). : a shameful and unblessed VI<457 ' 

scum of people, and wicked and con- 

to be tlu- |H- .pie \\ith whom you plant ; and 

not only so but it spoilt th they will 

ike rogues, and not fall to \\ork, but be lazy, and 

^jK-nd victuals, and be qu ory, 

untry to tie discredi 

the plantar I: ; : < lurrwith you plant ought 

to be gardeners, plowmen, laborers, smiths, carpenters, 
>, fishermen, fowlers, with some few apothecaries, 
surgeons, cooks, and bakers." 

The Labor Supply 

B most serious problem encountered by landowners Wecdca. 
was the difficulty of securing a - < of laborers. 

Able-bodied men who would work for hire wire scarce 
in the colonies, and wages were consequently hi^h. The KmeUnd. 
attempt to regulate wages, in accordance with Kngush 
prece*: [he statute passed by the 

General Court of Ma&sac) for example, 

prescribing 21. a day for skilled artisans, was frequently 
revised and finally repealed. The natives were lazy, at 
least in the estimation of the whites, and showed no a 
fid work. The attempts made to force t 

rial jnt.ple to manual labor were unsucce- 
the captives sickened and died In England, on the other 
hand, artisans and field laborers were falling into poverty 



>f the t'nitftt S: 

Hr, A:I. 
Genesis, of 


506 ; II, 688. 



in Virginia. 

and crime for earn an honot living, and 

tin- parish olVuvrs were eager t<> rid then : the 

paupers and dissolute persons with whom their jails and 
workhouses were tilled. It was thought a thrifty and 
benevolent scheme to send this surplus j)<>pulation to 
America. The London Company undertook to meet half 
the cost of transportation and main: >r all (hi, 

sent them by the- parish authorities, <>n the understanding 
that they were hound to servire from the da\ 
arrival in Virginia until they came of a^c. The Company 
undertook to provide thc-e little servants with food and 
clothing during their term of bondage, to teadi them some 
trade, and to assign to each hoy, when his freedom 
arrived, fifty acres of land to cultivate, a cow, seed corn, 
tools, and firearms. He- then became the Company's 
tenant, paying one half the produce of his farm for 
years, at the end of which term he was insured full p< 
sion of twenty-five acres. One hundred pauper children 
were sent to Virginia from the city of London in 1619 and 
one hundred more in 1620. 

Indentured Servants. After the collapse of the Com- 
pany, individual planters be^an to import servant 
similar terms. A written contract or indenture hound 
master and man to the fulfillment of their mutual obliga- 
tions. The term varied with the aije of the se. vant ; if 
over twenty-one years of age he was to 
if under twelve, seven. For persons between t , 
twenty the usual term of service wa> live years. A law 
enacted in 1666 made the general requirement <>; 
years' service from persons imported at nineteen \ 
or over, while servants under that to serve until 

their twenty-fourth year. Children were preferred to 
adults because they were usually more teachable, tin 
of maintenance was less, and the term of service I" 
Hundreds of these unfortunates were indentured by their 
relatives, or transported by the parish guardians, or kid- 
napped by the agents of shipmasters and shipped to Vir- 
ginia to be bound over on their arrival to the planter 


heir sen-ices hun- 

Imi .',,:. 1627 and the shameful 

trade thri\-d ihrrr.uirr K Ration seemed 

futile In ir,so the English - estimated that 

usaiid | Arsons were each year "spirited 

away " to America by force or fra 

he adult linals whose 

death sentence had been commuted to a term of service 
in the mia early pro- 

tested against tin- 
law prohibiting the r h j Arsons pasted the 
i- of Burgesses (1671) and was approved by the gov- 
years later this law was set aside to give 
. transportat al offenders, 
rebels had been sent to America during 
.veil's ixcupution of Ireland, and ('.. vere 
tran>; uim- 
larts. Aftrr thr nMuration of Charles 
c ^-nt to tht- colonies to 
be Sold i: n involved in tl 

3 and th ners and laborers who 

rebellion \\ere also transported to 
Hid to the Barbadoes or to Jamaica 
there was a good chance of 
l u-er. hut the greater number were disposed 
of in hern col- <-re estates were cultivated 

On the litt! ngland farms in- 

dent so much in demand. 

law did aid to protect the servant in his Brace. 

failed t ie adequate food " Ch - x - 

and lodging or trt-.r ian with undue harshness, the 

latter had recour- art, and the commis- 

rs were authorized to annul :' the master 

a case of Phillip*. 

m >hould lx? fur nd if the ser- fl^Jf 1 !^ 

ecame |HTinaiu-ntly incapacitated the ma-v I. 

still i in till th- : there. 

. was rcsp ther hand, the county 


Industrial History of the Ignited S: 


I, 130 


Letters from 


IT- .111(1 

Servants in 


II, Ch.XI. 


II, Ch. XII. 

Bk. IV, 


officers were bound to a>si>t in tin- recapture of runaway 

Men, boats, and horses were impressed fur the 

search until tin- fugitive was restored to hi- master. He 

was then obliged to serve double tin time of hi- une.\; 

term and to j .ipture. while if the offense 

repeated he might he whipped or branded in the eheek. 

Whatever may be thought ^\ the mural right and wrong 
of this labor system, its economic advantages were many. 
Laborers were transferred from the place where they were 
not wanted to a place \\ here they were in demand, and their 
passage money was paid by an employer who was guarai 
:ist loss by a claim of from five to ten years of set 
When the term expired, master and servant presented 
themselves at the county court and a certificate of emanci- 
pation was made out and duly signed. The servant 
then presented with ten bushels of grain, two suits of clothes, 
firearms, etc., sufficient to secure him against want, and 
the emancipated man could earn good wages as a free 
laborer or he might even acquire land. In Pennsylvania 
and New Jersey redemptioners were granted fifty and 
seventy-five acres to cultivate in their own right. 

African Slaves. Toward the close of the seventeenth 
century the supply of servants from the British Isle 
short, and laborers were provided from another source. 
A shipload of negroes, captured on the Gold Coast, had 
been brought to Jamestown by a Dutch trader in 1619 
as a business venture. The Dutch West India Company 
sent other shiploads from time to time, but they found 
their best market in the West Indies. There were only 
three hundred Africans in Virginia in 1650 and but two 
thousand in 1671, and the number might have remained 
inconsiderable had not an Knglish commercial corpora- 
tion the Royal African Company, chartered in 1662 
been given (1687) exclusive monopoly of trade between 
the Gold Coast and the Brit ; -h colonies. Under the 
auspices of the Duke of York, the commerce in -lave 
encouraged, and great number- were sent to the Atlantic 
coast for sale. 

Tk* />' Asftcts of CohmiMat: 45 

The Africans were barbarians, but they had practiced 

agriculture and primitive manufu< 

phvMially better adapted l held laU.r in a h.t hi!..itr 

than the servants imported from the British Isles. It was 

soon apparent that the >lave was a more economical in- 

than the indentured servant The initial cost 

was greater. The passage money paid to secure a servant 

irom 6 to 10, while the price of a slave 

:^o; but the servant was bound for iTckVnT 

the slave was bound for life, li 

child: <xjver, became the property of his master. 

The slave was fed and clothed more cheaply than the ser- 
vant, for there was no contract, and the slave had no 
standing in the courts aga ican 

had less skill and intelligence than the white sen-ant, but 
i^rade labor was not necessary for extensive agriculture. 
Slaves were bought and sold all along the Atlantic coa-i. y*m. 
They were less in demand in the Northern colonies where 
more at labor was required and where the climate 

was too s< men and women fresh from tropic Africa. 377-303 

>lave trade was at it- height, there were 
\ew England; in New York, the number Kaha, 
was seven thousand, or one seventh of the total r* ^ l 

; a, the slave population made upone thirteenth 

of the total ; in Maryland it was nearly half, in Virginia 

more than hal th Carolina one third, while in South 

Carolina the blacks outnumbered the v the ratio 

of four to three. The benevolent projectors of the Georgia 

v forbade the holding of slaves, but th< -ions ( 

overruled by the planters, who asserted that the hot 

malarial coast country could not be cultivated by 

George Whitefield, the eminent evangelist, ^*' 
supix.rted their p< D the ground that slavery was 

the best means to raise the Africans from barbarisr 

blacks d rd, learn the English V. 

language and adopt the Christian r< vere J 

<d to useful labor; but the influence of the system 
was none the leas demoralizing for owner and slave. The 




Docs. Col. 

New \ 
V, 610. 






in the 

ry of 

social dangers involved in bringing thousands of uh tutored 
savages of a wholly ali< Q work in .der hired 

overseers were very grave. A serimi- 
broke out in South Carolina (1721), and the Board of Trade 

1 tin- L'overnor to devise some law for ein 
the importation of white servant >. 

The Scarcity of Money 

Once "seated" upon the land it y for an in- 

dustrious community to provide shelter and food and 
coarse clothing, hut all luxuries and many of the neces- 
such as iron implements and other manufactures, must 
be imported from across the water, and to pay for 
commodities was difficult. Fortunate was the colony for 
whose products there was a market in Kngland. Gold 
and silver coin was always acceptable to foreign ( red 
but of this there was "little in circulation. The .-pecie 
brought over by incoming colonists was soon returned in 
payment of debts, and there was as yet no mining of the 
precious metals. The main source of supply was tin- 
Spanish colonies, notably the West Indies, whence silver 
might be had in exchange for lumber and salt fish. Several 
of the colonial governments established mints in the hope 
of providing a specie currency, and for thirty->ix years 
(1652-1688) Massachusetts coined the " pine-tree " shillings. 
They contained but 78 per cent of the silver required in 
an English shilling, but even this depreciated coin 

For the purpose of local traffic certain staple com- 
modities were used as the medium of . corn, 
cattle, and beaver skins in the Northern colonies, tobacco 
in Virginia and Maryland, rice and hide- in the Carolina* 
and in Georgia, bullets along the frontier. The several 
colonial governments authorized the practice and under- 
took to fix the specie value of these commodity moneys. 
The General Court of Ma a< hiiM-tt- 1640) set the value 
of Indian corn at four shillings a bushel, that of rye at five 

Tht />'// </ Colonisat. 47 

shilling, ! \\ .it rffc A M 

till lu-M at New Haven in 1704. -* 

i merchant to every trader: 

who Goods according to the spetia they JSj^-, 

pay in . vi/ IV v, Pay as money, and trust- Journal, 

I' . etc. at the prices set' 

General Court that year; mony is piece- 

.y shillings (as they call 

Good hard as sometimes silver coin 

\lso Wampoi Indian Beads 

serves for change. Pay as money is provisions as 

aloresi/ one I'hird cheaper then as the Assembly or Gen/ 

>t as they and the merchant agree 

r comes to ask for a c 

rncs before the merchant answers that he 

has it, he sais f is Your pay redy ? Perhaps the Chap 

it do you p.. ys the merchant. 

>uyer having answered, then the price is set ; as 

supjxjsc he wants a sixpem nd in 

pay a DC, and hard money its own price, 

viz. 6<y " In \ .varehouses were established for the 

storing of tobacco, and certificates of deposit were issued 

erved the purposes of local trade, but the value of 

tobacco fluctuated from year t The government BulJock. 

attempted to limit producti* :lini, r this, was forced P*- '. Ch. 

to buy up and bu D order that 

depress prices unduly. 

The mil the nati a >hell money 

called wampum, and this admirably served the purposes 

<-. So long as wampum might be exchanged 

caver sk .issed as money a ie whites, 

and it was used throughout the seventeenth century all 

along the Atlantic coa> lisappearance of the Indian 

triU-> ile>tnyed it 


D wight. 


II, 297-298, 



I, 122. 



THE men who came to the English colonies, whether 
lemen or paupers, proprietors or indentured servants, 
under the common necessity of providing themselves 
with food, clothing, and shelter. The first >ettler> 
everywhere farmers, since the necessities of life must be 
had from the soil. How easily an able-bodied, intelligent 
man could make a living in America, we are told by a con- 
temporary observer. " It is common to see men demand 
and have grants of land who have no substance to fix 
themselves further than cash for the fees of taking up the 
land; a gun, some powder and shot, a few tools, and a 
plow; they maintain themselves, the first year, like 
Indians, with their guns, and nets; and afterwards by the 
same means with the assistance of their lands; the labor 
of their farms they perform themselves, even to being their 
own carpenters and smiths; by this means, people who 
may be said to have no fortunes, are enabled to live, and 
in a few years to maintain themselves and families com- 
fortably. . . . The progress of their work is this; they 
fix upon the spot where they intend to build the house, 
and before they begin it, get ready a field for an orchard, 
planting it immediately with apples chiefly, and some pears, 
cherries, and peaches. This they secure by an inclosure, 
then they plant a piece for a garden ; and as soon as these 
works are done, they begin their house: some are built 
by the countrymen without any assistance, but these are 
generally very bad hovels; the common way is to agree 


under British Cot: 

.ml mason for so many clays' work, and 

.in to serve them as a laborer, which, with a 

runs and other ar cannot make, is the whole 

expense: many a house is built for lest than 20. As 

.is this work is over, which may be in a month or six 

falls to work on a doing all the hand 

..; able to buy horses, pays 

a neighbor for plo\\in. ay be worth 

two and a couple of young colts, bough 

cheapness; and he struggles with difficulties till these are 

a . hut when he has horses to work, and cows that 

milk and calves, he is then made, and in the road to 

surprising with how small a sum of money 

his course of settling; and it 

SB afl the first mention how population must increase 

in a tun (here are such means of a poor man's 

and in \\hiih. the larger the family, 

Money profit in such farming there was none unless the 

means of which the -urplus 

ng needed fot 

D grown leared land was ground at a grist- 

mill i trees and run by water power or 

'. Cattle and hogs ranged the wood! urnished 

meat, to be < r salted down in pickle. Hides 

uide up into shoo <-n the place, and the 

.!* spun ami 'arm, du 

it from the sheep that grazed the hill 

pastures. Flax was grown in quantity to pro- 

the 1 :_' 'thing need be purchased 

v ec. millstones, and imple- 

ments of iron 1 h condit: 

though he canu 
nturrd s< erm of s< 

at an end. the bondman became a free laborer, and, since 
wages w< lulated enough money 

$0 Im/iistritif History of the I'nit^i S 

Ch. XIV. 


I. ( h Mil. 

I. 45-93- 

from Earn. 



D wight, 

I, Letter 


The mother country offered no MU h opportunity to 
her sons. There wage- \\ere low and rent- hiuh. and the 
cost of living great. Not the utmoM diligence and thrift 
could put a poor man in posseiin of an at re of ground. 
Small wonder then that the unemployed laborers and dis- 
inherited yeomen crowded the- ship> hound for America 
and besieged the land offices for title to a -hare in the 

The New England Colonies. We have seen with what 
difficulty Knglishmen adapted themselves to the severe 
dimate of New England The wint hitter beyond 

anything they had known, and the sudden changes of 
temperature proved trying to constitutions accustomed 
to equable island weather, (iranite rot k and glacial drift 
made an unpromising combination to farmers accustomed 
to the fertile fields of Old Kngland. The soil was sterile 
pf in the valleys, and the summers loo short for ripen- 
ing English grains. Nevertheless, the colonists who secured 
grants in this inhospitable region managed to support 
their families and eventually to accumulate wealth. Tin- 
friendly Squanto taught the men of Plymouth how to 
plant the Indian grain and how to fertilize the soil with 
li-h. one in each hill. Mai/.e was successfully grown in 
the coast districts and soon became the staple breadstuff. 
Within a few years the Pilgrims were selling corn and salt 
pork to the fishing stations up and down the coast. \ 
tables, too, flourished in the brief, hot summers. Apples 
and cherries and the hardier fruits did well. The cattle 
brought over from England at ost found pasture 

on the cleared land, but it \va< necessary to house and 
them through the three or four months when the ground 
was covered with snow. The forests afforded excellent 
timber, oaks for the hulls of -hips, spn: -died 

for masts, pine, maple, and che-tnut for the buildn. 
<-s and barns and mills. There was plenty of g 
and fish were abundant. Wh- thing was to be 

had for the asking, men grew improvident of nature's 
gifts. The woods were cleared with a wa-teful zeal that 

/Vtr /<>//*/. 51 

took no though e soil planted i ..ntinuouily 

to corn was soon drained < fur-bearing 

lcared with ih- i-.r. products of 

woodland would |*>rted only a sparse 

IH.J.I; inland had other sources of wealth. 

!i.- h-.i.i-,\.iirt : -minac, Weedca. 

and th.- I'enobso.t, the beavers built their l - * 

shilling a i*und. and trapping was a lucrative occupation. 

London in the live years fmm 

'36 10,000 of beaver, and lh< :hc utter 

he black fox were hardly less valua cry year Bradford. 

Boston sent a vessel to Sable Isla h came back 

loaded \\ i t h t h . rized skins of the black fox, toget her 

>eal oil and sea lion's 1 tu Indians were the 

most successful trappers, and the hulk : the furs was 

hange for food, blankets, and 

amnumiti able 

trade was for (1685). 

D : the . .-.i- 1 rpassing Weecfen. 

~s in the sea, and li-hin was a pn>lital)le indu- 1 ; " I3J ' 

the -t.irt. CM! . .sere 

t in Massachusetts Ha rble- 

head and SaJt :riel i\*\\ t> the V 

the CaT ;ntries of KurojH-. In : 

hundre<l thousand cod were sent to foreign markets. 
When the near-shore fishing grounds were e\ the 

enter ca and were re- 

wardi codbanks off Newfound- 

1 a more !y. 

h was readily 

supplied by eva|x>rating sea water. Salt works were set 
up at Pi^ata.; in io;S. Along 

ape Cod as well, salt vats were a considerable I. Ch. xni. 


t or tin whale was abundant otT th nr- Ml 7< ^'- 

^ast th hundred years of colonial 

y, and furni>hed : of great importance in the ' 

52 Indnst). vr I'm ted 


Am. Mer- 

Am. Ships 
and Sailors, 

View of U.S. 

markets of the time, whale bones and whale oil. The 
carcass of one of these huge creatures was valued at 16. 
At first men were content to save the blubber from the 
bodies that drifted ashore. Soon, however, they 1 
to put out to sea in boats and harpoon the animal when he 
came up to breathe. Toward the close of the seventeenth 
century the fishermen of Nantucket took up this hazardous 
industry and developed a high degree of skill. A tradi- 
tion of 1690 has it that a prophetic Islander, as he watched 
the whales spouting in the Sound, exclaimed, " Thi 
a green pasture where our children's children will go for 
bread." The season's profits were shared by masters 
and men, so that every man aboard, from the captain to 
the cabin boy, was directly interested in the success of 
the voyage. 

As the whales were driven offshore, these hardy sailors 
followed them out into the deep sea. Ambergris wa> wort h 

mtnt under British Control 53 

its weight in Ml\er. while sperm ry, and spermaceti 

were in great demand -hty prey led 

whalers to A s Davis Strait, Behring 

ding vessels were built 

.at her than suiit or beautiful, and could live 

ic roughest weath tanned by sailors 

1 the world over for skill and daring. New Bedford, 

lehcad, and Pn> 

cis and profits, but Boston was the center for the 

New York. The climate of this region is similar to 

ew England except in the lake , JJ 

re equable. West of the 

hills. The soil of the greater Mew 

e, far mo i colonists 

secured abundant crops without t! fish or dam 

shells. Wheat as well as c. 1 be grown in the 

leys, and in t! -1 >t the lakes grapevines and 

peach trees flourished. Noble forests repaid in timber 

than the cost of clearing the land. Sawmills were 

I logs could be floated down the 

.iwk to Albany and thence d.\\n the Hud>on to the 
sea. Wages were labor, an 

readily MN e money enough to secure a farm. Once 

he was able to feed his family, and 

yet sell s<> .rmer 

ity. Th- products 

>ent to market in exchange for the necessities not produced 

me were wheat ai Hour, corn, ixotatoes, and 

barlcx this last the brewers of New York made 

The Champlain country was a famous trapping ground ppca. CoL 
for beaver and other fur-bearing animals, while th< 
Lawrence and the Great Lakes gave access to remote an 

lored tracts of f \\ tribes 

eager ange peltries for trinkets, rum, and firearms. 

When this traffic was at its height, forty thousand skins 

54 /ntiitstriti/ History of the 



I. 27-M5, 
340-359 ; 

II. 109-114, 

H -.11.-. 



426-431 ; 
II. 17, 19. 



I, 216-248, 




were annually e\|>orted to England, hut the trade declined 
:d the end of the seventeenth century. The export 
>()<) amounted to only fifteen thousand >kin>. 

The Middle Colonies. Tin territory most congenial 
to Englishmen by reason of phynYal endowment lay be- 
n the forty-second and the thirty-ninth parallels. 
Southern New York, Pennsylvania. New Jersey, and 
Delaware, although ten degrees south of Great Britain, 
have a climate quite similar. The virgin soil, even under 
superficial tillage, yielded crops of wheat and barley. 
and rye, greater than the Kngli>h farmer could produce 
with scientific fertilization and rotation of crops. ]' 
trees, a hothouse plant in Kngland, bore so heavily on the 
sandy plains of New Jersey and Delaware that the fruit 
lay wasting on the ground or was fed to hogs. Cattle 
and sheep throve on the rich native grasses without need 
for housing or feeding through tin- winter. Timber in 
great variety was to be had on the slopes of the Alkali. 
and the Highlands of East Jersey contained rich mineral 

Great estates were rare. The fertile area was parceled 
out in small farms, and the settlers, whether Dutch, 
Swedish, or Engli>h, lived in plain but ample comfort. 
Indentured servants were far more frequent than in t he- 
colonies to north or south. It was quite usual for a man 
of no substance to mortgage his labor for the cost of tran>- 
portation, and foreigners, notably Germans, preferred this 
means of getting to America, since it insured them em- 
ployment for a term of years and opportunity to learn t he- 
language. Slaves, too, were not uncommon. The country 
was better suited to the African physique than the more 
Northern colonies. 

Virginia. South of Delaware Bay climate, soil, and 
products were new to men born in the Briti-h Isles. The 
summer season was longer and far hotter, and the lowlands 
malarial. The settler- at Jamestown attempted to 
grow wheat, but soon discovered that though the plant 
shot up to an amazing height in the deep, black soil, the 

./MS*/ u*d< h Control 



$6 Industrial History of the United 

els did not harden into pra n Mai/e planted under 
the direction of tin- Indian- brought in a heavy harvest, 
and seven summers after the landing ti five hun- 

dred acres in corn. 

In 1612, John Rolfe. the husband of Pocahontas, r. 
u v - a crop of tobacco. It soon proved to be the most market- 
able article to export, and the settlers began to cultivate 

.uotine plant to the detriment of food products, until 
Governor Dale was forced to decree that no man should 
plant tobacco until he had at U-a-t two acres in g 
The Company urged the cultivation of flax, cotton, indigo, 
grapes, mulberry d silkworms, commodities that 

they thought more advantageous to the mother country; 
but their arguments were ridiculed by the planters, who 
persisted in growing the more profitable crop. Flax and 

silk require continuous care and highly intelligent 
labor, to be had only for high wages. There was no for- 

market for maize, and wheat brought but 2s. 6d. 
perbu-hel in Fngland, while tobacco sold for 35. a pound. 
The freight rate to London (3 per ton) was prohibitory 
in the case of the less valuable crop. In 1619 twenty 
thousand pounds of tobacco were exported from Virginia, 
in 1620 forty thousand, and in 1622 sixty thousand pounds. 
So given over to the cultivation of tobacco were- the planters 
that they traded their firearms to the Indians in exchange 
for food. The Indian massacre of 1623 was the result of 

foolhardy policy. In the year following, the colony 
being threatened by a bread famine, the government re- 
quired that a public granary be established in every parish, 
where each adult male must deposit a bushel of grain after 
the harvest. Legislation availed very little, hov 
for every planter followed the course that meant imme- 
diate money advantage. Only when the price of tobacco 
declined, or hi> land, drained of fertility by this m<. 
hausting of crop-, would no longer bring in a profitable 
return, did he undert. m and wheat. 

fallcndcr, James I had opposed the cultivation of tobacco on moral 

grounds, declaring that it tended to " a general and 

Dnvlopmeitt under /.'/;//>/; ( ,</. 57 

i t-th ' bodies and manners." H< 

tie grown in England, and restricted th 
port.: thousand pounds a year, but n 

nor l.iirr n- decrees were of any avail 

the first decade ot y thr colonies ex- 

. >nr million (xwnds a year, that figure was 
M >' ! 7>. And a dear hundred-million mark 
was reached before the dose of the eighteenth century. 
the tobacco exported rphmiff was grown in 

The >bacco has profoundly influenced 

the economic organization of \ haracter- 

isjriculturaJ unit was thr ;i one to 

>and acres. 
teen th century, the land was tilled : ured servants, Fbfce. 

advantage of slave labor came to be 
realized, the tobacco fields were cultivated by imported 
Africans. It was a tillage that did not mjuirr a : 
degree of intelligence. Ignorant slaves under the M. **- 

vision of overseers plowed and planted and hoed the i 
levels of rich loam and, when the come to ma- 

turit\ -heleavt :y house. Great 

s that originally cost nothing l>ut the land office fees ftdUfh. 
ht their owners fnmi i' to 80,000 a year, nd 
the ordinary planter could count on an i: 
3000 to 6000. Estates of less than one thousand 117-119. 
acres could not be worked to advantage by slave labor. 
It was estimated that one slave could till fifty acres and 
rseer could mana^ . slaves, and varia- 

- from this economii ived loss. It was 

usual to reckon the value of a plantation in hands rather 
than in acres. Each slave was expected to produce 
h of tobacco and 4 worth of lumber, corn, and 
provisions, in the course of a year. By so doing he * 
paid for his maintenance (3) and the interest on his pur- 
chase price (50 .. 05.) and brought 
in a handsome margin of profit to his master. \Vht 
this produ ue are added the profits on the natural 

58 Industrial J 

increa-e of marketable -laves, it will how great 

the immediate advantage's o: 

Phillip*. I he economic disadvantages were less evident 

>-&- hundred years ago than tli \. Theome pn>- 

ductive tobacco field- land-. 

a meager return by tin- appli. 

fertili/er-. Rotation of crops, subsoil plowing, tin- utili- 
zation of animal manure like imp.- iih la- 
borer- fre-h from barbari-m. and tin- planter- were 
to extensive cultivation. When 01 if land v. 
rseer and 

and waste eharacteri/ed the management of 
tin- whole plantation. Hou-e- htly built, orchards 

were no longer planted, vegetables, grains, and other 
possible crops were neglected, the fields \\ere not in< -lo-ed. 
cattle, left to range over the waste lands unlimited and un- 
fed, dwindled in M/e. The- demoralizing effect of extensive 
agriculture \va> OCVer more a|>parenl. 

The wholesale production of such a staple meant a bri>k 
export trade. The tidal river- and fiord-like inlets, some 
of which were navigable evirhty miles from the sea, ad- 
mirably served this purpose. The banks of the James, 
the York, and the Rappahannock showed a series of irrcat 
plantations, each with its own wharf, to which 
autumn -sels came direct from Kn.uland to 

take aboard the hogsheads of tobacco, and to put ashore 
Phillip*, the commodities sent over in exchange. This was a highly 
I, 282-283. profitable trade, even more so to the mother country than 
to Virginia. Kngli>h manufacturers found among the 
luxury-loving planters a ready market for their fine cloths 
rich carpets, and mahogany furniture. Tobacco was 
expected to pay for everything, if not this year's crop then 
that of next. Kvery planter kept a running account with 
his factor in London, and many of them were hopelely 
in debt to their KnghVh creditor-. The practiceof mo' 
land and irain-t the n,< advance 

characterized the Smithern agriculturist to the pre.-ent day. 
The Piedmont section of Virginia and the Great Valley 

n> 59 

and tin AlU^haniet were not seiticd gU 
I .i the coastal plain had been appropriated, and 2dialr 

1 country was postponed 

until tin In 1716 Alexander Spots- li.Ck.XMi 

wood, the wisest and ablest of colonial governors, traversed 

:Te>t tl nia 

*sed that mountain barrier at 

discovered the Sbenandoah Valley. .*. 

" God's <> -utly ta The 

.e Golden Horseshoe," who drank the king's health 

on the sunur. tint George, formed a significant 

the actual settlers who swarmed i: un- 

hundred years. The Sc< i 


<1 impelled the Puritans ch.XXXDL 
and ( in the si-. -.nd linen 

had been ruined ( i6> . ous and 

y rurtailed (1704) by md they 

'it freedom from Kngli>h beyond the sea. 

race mi;- hundred thou- BoDt^ 

sand came into the o>l<>mes between 1730 and 1770, the J 

r part to I'l; :'ch.Xn. 

third of the |H)pul.i- fM ! thi> >turdy 

nding no desirable land open t in 

ast countr>-, they pushed sout ! 

Range and peopled the Great Valley McCdy. 
come the 'cradle of I ^ 

In i;f)'j thcM.uth* - t auga, was planted 

n the >halow of the (i- >, on th 

ted plateau forum i l.y the streams that flow westward 

men who tix>k up farms in the mountain valleys Phillip.. 
could raise wheat and ba at and wool, fruit and ' ; * *** 

ulVu-ient lor mnnxlities Wdd. 


to pay the cost of trar txl to de- ,45. 

i-s to be produced only by in- 

60 Industrial History of the United States 


II, 40, 61, 

IOQ, 126, 




II. Ch. V. 


391-396, 407, 
408, 414-429- 


and I 

II. 326-330. 

telligcnt labor. From these uplands came tin deer 
and tanned leather, tin- timber and tur|)eiitine. tin- hem]) 
and flax, that figure in the export tables. Such farm- 
profitable only under intensive agriculture, and : 
little temptation to ae<ju: estates or to import 

slaves. The people of the "back country" we 
pioneers who tilled their fields with their own hand- and 
manufactured clothing, furniture, and wagons at I 
as did the small far md and Pennsylvania, 

vast in the physical features of the plain and the 
foothills was reflected in the character of the respc. 

The physical characteristics of the Carolinas and of 
Georgia v. similar to those of Virginia, except that 

the climate of the coastal plain was warmer and more 
malarial. Here in the sea marshes were the grea: 
plan; < must be flooded in the growing season, 

and it requires a rich vegetable mold such as beloii: 
tlu- - ' d of trees and thoroughly 

< d. the ''dismals" were readily converted into pro- 
duct 1 ' lantations. The work was such as no v 
man could endure, for the laborer must stand knee deep 
in mud and water, stooping under a broiling sun, while 
pestilent exhalations filled his lungs. Even the blacks 
sickened and died. 

There was not so much profit in this crop as in tobacco. 
Each slave was expected to produce 10 worth of rice in 
a season. When to the cost of maintenance and super- 

n (3), and the interest on the purchase \ 
105.) was added the risk of sickness and lo> te of 

profit dwindled considerably. Nevertheless the planters 
lived in state and luxury, drawing freely upon the rice 
merchants for advances in money and goods. Slaves 
and overseers meant great estates here as in tide- 
Virginia. There wa< no chance for the working farmer 
in a region where the climate made field labor impoible 
for a white man. 

Rice was introduced into South Carolina in the last 

KE IN S-' 

Dwlopmet. 'ts/t Control 6 1 

quarter of the se\ . Before the dose of 

the eighteenth this crop made up one half the exports j 

iy, a circumstance that gave serious concern 

was no great demand ^<**9 

for r sh Isles, and so far as this export found 

its way in ;>can markets, e.g. Spain and Portugal, 

it canu- into , 

ild indiii > to cult 

silkworm, so greatly desired l>\ th< eld weavers. 

The seed of the Oriental indigo was planted on the Ashley 
i Lucas, a botanical lady of Charleston, in 
and after a series of vexatious experiments she 
ceeded in extracting a dye i rod- 

years thereafter the Sea Island de- 

vote*! hest soil- :i of indigo, until, 

in the last decade before the K- i. South Carolina 

hundred thousand pounds a year. Indigo, 

shillings a pound, brought in a h 
One slave could care for two acres pro- 
.% each eight pounds of dye, besides putting in the 
r months on other crops. 

the "back country the hills were dothed with 

forests, and the soil, of the valleys at least, was 

ama/i e wheat could be grown, and fruits 

and vegetables ; while in the Northern counties tobacco 

was cultivated to advantage. re was more 

in tobacco than in rice and < he air of 

hills was more wholesome, the original settlers of the 
Carolinas dung to the sea level, and population moved 
westward but slowly. Not till the second half of the 

i migrant hese new 

lands. The pioneers paid their way by the products of 

the forests, lumber and pitch and tar and .- of wild 

l>ut as the trees were deared away, cattle were 

brought in. The hill pastures were excellent grazing 

id, and > ed fidds ced, 

ittle roamed at will irres;>< p, and a 

isand head was not uncomm>: 

62 Industrial History of /// / 





PolK | 

the paradise of the "squatter." A fertile trad of hind 
having been chosen, the farmer had hut t<> live on it for 
a term of ten. fifteen, or twenty yea' :nple 

title. The fore-is teemed with game, the ri\ers with li-h. 

iertilc soil yielded food in plenty with the rudest 
tillage, and an industrious man might readily acquire 
a snug little projuTty. Few CTC imported into 

the hills, for their labor was not so profitable as in the low- 
lands and their requirement- in the v.ay of f.M.d and cloth- 
ing were greater. II- it the Piedmont 
district, north and south, physical conditions favored the 
small estate and the self-employed farmer. 

Fostering Legislation. Certain agricultural interests 
furthered l>y the desire of Kngiish statesmen to render 
Great Britain independent of European imports. The 
hemp, lumber, pitch, and tar used in British shipyard- 
had been imported from countries with which England 
might at any time be involved in war. To secure these 
supplies from a reliable source, the government determined 
to repeal the import duties, so far as the colonies were con- 
cerned, and to offer bounties on such goods as should be 
shipped to the British Isles. The bounty on hemp was 
made 6 per ton (1702). In response to this premium 
Virginia and Maryland exported one thousand tons a \ 
but New England, whence great returns were expected, 

produced enough for her own shipyards. I >ecp, 
rich loam and plenty of moisture wen- e-sential to success, 
and these conditions were rare in the Northern colonie-. 
The same act of Parliament offered a bounty of i per 
ton on masts sent to England. So solicitous wafl the 
government that the timber of the colonies should not be 
wasted, that a penalty was impo-ed for felling a young pine. 
The surveyor-general wa- authori/.ed to mark with a broad 
arrow trees reserved for the use of the royal navy, and t he- 
penalty for felling was 100. The British import <i 
on lumber were removed. Notwithstanding these in<: 
ments the colonists continued to ship the major part of 
their lumber to the West Indies, Spain, and Portugal, in 

tnftit ////</V/ 63 

exchange for goods imported thence. An order from the 

trade was of no ei 

ne ni i lu- king's representatives, " but 

roposed bounties on other naval 
stores, 4 ir .uj.l i un rosin 

and turpentine. This last bid was unexpectedly success- 
ful. The Carolina* availed themselves ;>rcmium 
offered and were soon sending sixty thousand barrels a 
year to Engl. ices dropped to one third of 
former rate and im|n>rts from t ceased English 
hants soon had more of these com mixii ties than could 
be disposed of at home and began export < (\mti- 
urpose of encouraging the pn>du 

: i ports was re i : 748) 

and a Ixmnty oilered . and the 

Ik affected the Caroh'nas fa 

acreasing the exports 
from the Northern colonies. 


Parliamentary legi- ng colonial industry Pitkin. 

was usually suggot ic Board of Trade and 

a omimr ..uruil intrii-tol with the 

!>ossessions in America. The lord 

o>inmiioruTs were empowered to imjuirc into the con- 
i of the several plantations, the progress made in 

<le. and r fceivc compla 

and petition^, and to make ret uions as a basis 

MfHTial enact im-nt. The ;he com- 

missioners was to keep colonial in<l channels 

that would j'urnMi .1 : country 

ies were expected to ; rials 

tores and a market tor the finished 

From t! \cw England found it 

difficult to pay forgoodi imported from the mi : .:r>-. 

6 4 


The first shipload of cxj><rt> from Plymouth tin- l-.irlune, 
November, 1621) was made up <f dap: 
skins. Naval stores, nia-ts. planking, tar, pitch, etc.. 
always in demand, but tin- Mipply dei rased aa the i'. 

were cleared, and other fur> brought a high prii e 



AGAIK8T 2,000.000 


COlOMU |,000.000 





1768 1786 1776 





in London, but this, too, was a short-lived industry. 
It was fortunate for New England that the \vhal- 
began to afford marketable products just as the fur trade- 
was languishing. The spoil of the whaling voyages, how- 
ever, enriched only a few coast : 1 IK farmers could 
raise nothing that found a ready sale in Knglaml. V 
over, the cost of imported goods was beyond their in 
The transatlantic voyage was slow and the ! 

ht charges 9 h and commissions . 

Dt: ./'/ 65 

rury records ab< omplaints of Bradford, 

travagant prices paid on this account \ \ .,.:.: 
ith in i stance, sold at a ; 

jo 1660) checked 
! the inflow of gold ceased 

Thesmal \\\ the col. my was quickly exhausted, 

and the colonists were no means of meeting debt - 


Cloth Manufacture. The General Court of Massa- 

Mitts strove to meet this difficulty i f aging do- 

mestic manu In 1640 th< re di- 

flax and 
to consider measures ; w heels and teaching 

Kjys and girls how to spin not only Max but cotton and Abbott, 
wool. 1 1 ie selectmen of tin x-vcral towns were J^JJJJj 

ordered to require every family t iurni>h m- or more ch.IL 

h >m was ex- 
pected to >pin thr ol every Col. Uwt 
week for thirty weeks in the yr .ilty for n.n- 
performance was a fine of y pound ' 

raw matt r:..l of tloth manufacture was scarce and 
dear. European flax had been introduced in 1629, but Weeden, 
raised for th. nion- difficult 

was bnni^ht from tin- Barbadoes ami tht- West t OL XIV 

ild only be spun whi-n mi.xwl with flax and 
was n tutT nust in dem. 

tr ' nthiT country, for th 

.1 with jralou> can- h prized 

nd |>rohiliitcd tht '-ece, 

few sheep in the col. :hr only 

wool was found in Spain. The General 

appealed to the towns 

within it- jur >ut the preservation and 

increase >i :ri;i-d t> purchase im- 

es, and fr i.ind meai -me over 

advised to bring with them " as many sheep as they 

66 Itiihtstritil History t <f the ( '///;, 

I, 387-394- 



Doc. Ji 

. York, 

rnicntly ran." Connecticut c nilar laws for 

asing the Mipply of llax and wool. 

The ra\v material once available, tin- people were soon 
able to manufacture their ov.n . loth ELTmhoUM 

kitchen was a work-hop where the women >pun and 
the seYges, kerseys, and lin.-ey-woolscys, which >er\ed for 
i.n wear. By the close of tin- seventeenth century 
Kn^lam! manufac-tured cloth in sufficient (|iianlities 
for exportation to the Southern colonies and to tin \ 
Indies. As tin- industry developed, mills 
for the more difficult processes of dyeing, and 

fulling, but the carding and -pinning continued to be done 
in the homes. The hutch of New Net he-Hand and tin- 
Swedes aloiu; the Delaware were no whit behind their 
Yankee neighbors. In Pennsylvania pri/es wci< 
for the finest weaves of cloth, and the artisans of Phila- 
delphia acquired an enviable fame. 

Restrictive Legislation. So as the colonists con- 
fined themselves to making coarse cloth for family use, 
the British i:<vernment showed no concern; but when 
goods of filler tirade be^an to be woven and offered for 
general -ale, tin- Kiurli>h woolen manufacturers became 
alarmed lot their colonial market suffer. Lord Cornbury, 
the avaricious and despotic governor of New York (1702 
1708), reported to the Board of Trade-. " I am well in- 
formed, that upon Long Island and Connect icut, they are 
setting up a Woollen Manufacture, and I myself 1 
Serge made upon Lon# Island that any man may 
Now if they begin to make Ser^c\ they will in time make- 
Course [sic] Cloth, and then fine; we have as good fuller^ 
earth and tobacco pipe clay in this Province, as any in tin- 
world ; how farr this will be for the service' of England I 
submit to better Judgments; but however I hope I may 
be pardoned if I declare my opinion to be, that all tlu-e 
Colloneys which are but bdon^in^ to the Mail. 
[England] ought to be -itirely dependent upon & 

subservient to Kn-jland. an 1 that can never be- if they arc- 
suffered to goe on in the notion- they have, that a- they are 

DcVf/Optttfltf HI. 'lilt (. i". ()7 

Englishmen, toe they may set up the same manufactures 

will y can cloath themselves, not only 

it handsomely too, without the 
arc already ubmittii. 

Aouldsoon think of putting in K\e< 
signs they had long harboured in their breasts. This will 
not seem strange whet >at sort of people 

In accordance with the recommendations of the lord 

iiissfoners, Parliament passed the Woolen Act (1699). 

No woolen goods might be exported from the colonies, nor 

i one colony to another, i. ;>lace 

in the -.1 h purpose to sell. In the following 

year the duty on woolens imported from England was 

removed. The result of this legislation was to check the 

manufacture of cloth for sale ar century 

the h .jlish woolen merchant^ <>n the American 

trade. Fully half the exj* colonies were woolen 


To a self-suppo: rminity leather is hardly less than t : .ere WES a: -I the 

raw ill the colonies, and : and the 

hide- ie and sheep were early u 

ii New England was erected at Lynn in 1620. In 
.ime year a shoemaker was sent over to Massachusetts 
i Company. The community gave 
acres of land and 10 a year for his services. I n 
1635 Lynn set upon tl hoes and soon 

became famous for the excellence of its product. 
Great pains were taken to secure a - 

In 1640 the General Court of Massachusetts 
;i the {>opulati*>n the preservation of hides, 
icreas we are informed of the neglect of many in not 
g Muh h.i<- and ---ins as by casualty or slau: 
\ as ordained that every hide must b< 
under a penalty of a <-. and leather 

searchers were appointed by each town whose duty it was 

6S Industrial History of the ( 

I, 540-343- 




to enforce tin Matute. No hides or unwrought leather 
might IK- exported from the colony. So succeful was 
this poliry lhat ly 1650 Massachu>et t- \\as manufac luring 
shoes for sale in the other colon -. Like the- maid] 
doth, this \va> in tho>e day> a d>me>tic industry. 
furnished a profitable winter occupation for the mei, 
boys of the household. Many a New I. upland farn. 
preserves among its outhouses the diminutive shoe shop 
\\here tin's \\-ork wa> carried on. In the middle colonies, 
too, leather manufactures were early developed. The- in- 
dustry was of prime importance, MINT not only boots and 
shoes, but coats, vests, doublets, breeches, and stoc! 
were made of leather, especially for servants' use. Even 
women's skirts and apron- tioned fr-mi this 

durable material. 

The abundance of beaver gave the colunists a distinct 
advantage in the manufacture of hats. In response to 
a petition from the felt makers of London, Parliament 
instituted an inquiry (1731) and learned that ten thon 
hats a year were produced in New England and New York. 
In Boston alone there were sixteen hatters, one of whom 
made on an average forty hats a week. The goods were 
exported not only to the Southern colonies and the \Ve>t 
Indies, but to Ireland, Spain, and Portugal, where they 
came into competition with English-made ha? I /nard 
the home industry, Parliament promptly ordered that "no 
hats or felts, dyed or undyed, finished or unfinished," 
should be "put upon any vessel or laded upon any horse 
or cart with intent to export to any place whatsoever. " 
Persons undertaking such trade were \" forfeit 1*500 for 
every offense. No negro could be employed in the manu- 
facture of hats, and no white man who had not se 
seven years' apprenticeship. These restrictions well -m'uh 
ruined the nascent industry. 

The products of the Southern colonies did not come 
into conflict with English interests. Preoccupation in 
the rai>ing of a few staples prevented the planters from 
undertaking manufactures. The several legislature- en- 

Development under British '*, 

acted st at icourage the produ aw materials, 

us hides and wool, and offered bounties on linens, 
woolens, hats, ho all to no avail. Nothing 

hut t est doth for the use of slaves was wovei. 

i*. The by-industrie- New England 

farmhouse ecu !! U- developed with unintelligent 

slave lab* 05, Rot* sted 

against this extravagant policy. "They ha 

of all *> England; as linen, woolen and \\m 

and silk, hats, and lea 1 Yd tlax and hemp grow 

nowhere in the world better than there. Their sheep \ 
good increase, and bear good fleeces ; Init th 

hem. The mulberry tree, whose leaf is the 
proper food of \, grows t a weed, and 

>i Ik worms have been obser and 

it hazard. I .its are made 

rhaps go first from thence; and most of their hides 
lie a i are made use of only ng dry goods 

in a leaky house. Indeed, some few hides wi- ado 

are tanned and made into s< :<<>. \m{ at <o careless 

a rate, that the planters don't care to buy them if they can 
get others ; and sometimes perhaps a better manager t 
ordinary will vouchsafe to make a pair of breeches of a 
deerskin. Nay, they are such abominably ill hu>hu 
that though t ; TV he overrun with w<*d. yrt have 

.viHxlen ware jland ; t! 

i>les, stools, chests, tx and all 

other thiiiK>. . much as their Uiwl- 

broor i- eternal reproach of their laziness." The 

wasteful h he Southern plan- 

merchants and manufacturers far better than New I 
land thrift. 

The cost of importing iron manufactures, nail-, agri- Bishop, 
cultural implement-, firearms, am h was L c 

so hiv:h t iicm- snk. 

with these essential e was a 

is deposit in the >w.i jxnuls all along 

of good quality might be pro- 

70 Industrial History of the United /. 

duced. John \Yinthrop. Junior, one of the enterpi 

of Massachusetts Bay, sc ;>ital and 

ski lied laborers from I .id erected (1643) a smelling 

furnace near Lynn. I he '<>t from i'ond. 

wood for and water power for the- bla^t fin 

were near at hand, and the works were- soon turning out 
seven tons of pig iron per week. A forge for the refining 
of th< 19 set uj> in 1648, and a foundry for easting 

soon followed. Joseph Jenks, one of the workmen brought 
over from Hammersmith, designed important imp: 
ments in scythes, sawmill machinery, etc., and was a 
considerable factor in the success of the Lynn \, 
For twenty-five years farm tools and dome>tir utensils 
sufficient for the needs of the growing communities in 
eastern Massachusetts were manufactured here. Then, 
the supply of bog iron and of charcoal failing, the enterprise 
was abandoned. The General Court granted three thou- 
sand acres of land in Braintree to Winthrop and his partners 
in the hope of developing the manufacture of iron from the 
bogs of Monontocot River, but this ore deposit was ex- 
hausted within ten years, and the works were abandoned. 
More successful was the furnace built at Raynham (1656) 
by the Leonard Brothers, English foremen first employed 
by the Lynn Company. The adjacent marshes suf- 
fer this and several other foundries in the town of Taunton. 
Somewhat later iron works were erected at (ireal Harring- 
ton (1731) and Lenox (1765) in the Berkshires. For the 
fir>t century of our history, Massachu-ett- was the center 
of the iron industry, but the other 'land ool 

were not far behind. Rhode Island had an iron foundry 
at Pawtucket, set up by Joseph Jenks. John \Vinthrop 
moved to the Connecticut Valley in 1645 and began the 
smelting of iron at New London and New Haven (1658). 
The General Court granted exemption from taxation to 
all persons and property engaged in this important enter- 
prise. The hill country of Connecticut proved to contain 
valuable deposits of hematite ore, and the iron mines of 
Litchfield County soon gave Connecticut precedence 

w<nt ///; 71 

Massachusetts. A forge erectt ne Rock in 1734 

has I operati* present day. 

naib and tacks was a domestic in- 
t liruu^ht in considerable revenue to the fanners 
w England. A small furnace was set u; 
ihimney I.TIUT, and in tin- \\mter season great quantities 

would otherwise have bn h an\il and 

hammer a man could make two thousand tacks in a day. 

was furnished by a m ting mill 

whose iid the nailmakers for their work and 

marketed the pitxi 

There was no smelting of iron in New York until the 
midti h century, when the Ancram works 

r. The ore was 

carried down from the (' de- 

posits of Orange Count \ e developed b* 

the K i. One of the Leonards began ting 

of bog iron at Shrewsbury in 1074, but the magnetic ores 
were not dist util 1710. I mineral 

was mined in the Highland- ther bags on 

pack horses to the works at V. >aic 

! nn was transported in the >ame toil>ome 

>n across the Orange M<>u -ale. 

works, was shipped to England, and. brought 

as a profital rt CI|KT veins 

is range 

illy worked by the Schuyl- ore, 

ii was worth 40 per ton, to H- The 

rs of eastern \ania began t ore 

.esandr :isilsearl> nth 

itntury Some ore was mined along the Delaware and 

:ehanna ri\t rs, but the surpassingly rich deposits 

of the Alleghanies were not opened up till the nineteenth 


ore was one of the commodities shipped from ^ IX 
Jamestown in 1608, and the London Company anticipated xxm. 

72 Industrial History <\f the Ignited S: 

rich returns from this source. In Hug skilled woi 
e sent over to "sot up three iron works " in Yn. 
Bishop, and two years later John Berkley. " gentleman," came out 
^ III. to take charge of the enterprise. Rich deposit- of 1> 
were found on Falling Creek, near Richmond, and a h. 
was built, but in the Indian massai re of 1622 work 
workmen were destroyed. The manufacture of iron was 
not resumed until a hundred years later, when under the 
auspices of Governor Spotswood, ' tin Tubal Cain of 
Virginia," the industry wa> placed on a stable found 
Six hundred tons of iron were smelted in Spot -wood's 
furnace in 1760. Furnace- were built at the falls of tin- 
James River near Richmond and on the Rappahannork 
near Fredericksburg. Here the ore was blasted from 
near the surface and carried in ba-ket- to the furnace. 
Some of the Virginia output was cast into domestic uti-n-ils. 
but the greater part was exported to Kngland in pigs and 
bars. The House of Burgesses assisted in the- develop- 
ment of these mines by grants of land and by the construc- 
tion of roads. 

The Maryland Assembly offered (1719) one hundred 
acres of land to any citizen setting up furnaces and forges 
in the province. The first undertaking was made- at the 
head of Chesapeake Bay by the falls on Princ ipio Creek, 
capital and workmen being provided from Kngland. 
The men were convicts sent over to serve out their term 
and the initial management was dishonest, but after years 
of disheartening effort, the enterprise was made to pay a 
considerable revenue. The greater part of the pig iron 
exported to England was shipped by this company. The 
Principio furnaces and Governor Spotswood's mines were 
the only iron works of any importance south of Pennsyl- 
vania, and these were engaged in the production of pig and 
bar iron rather than in manufacture. 

Restrictive Legislation. Now it happened that in 

and the- iron industry WU hampered by lack of raw 

material. The ore of Sussex and the supply of charcoal 

from the Weald were nearly exhausted, and the resources 

nder 73 

black country " were still unknown. Fully half 

- iron consumed in th- furnaces of Sheffield was 

in:j. n Sweden and Russia. The ironmasters the -apply imght be had more cheaply 

the coJonics, ami they urged .irliamen 1 

v ih- . u , an.l t<>ns a year needed to keep the 

going might be had from America, 

1 and water |x>wcr were abundant and the cost 

:rom the colonies 

i "iild be |)aid for in manufai tun--, and thus another busi- 
ness interest would secure an advantage. The act of 1750 
ron imported from America might come 
into a h port <i ..- )>ar iron was made 

duty free at tl ortS 

. this gave an important ad- 
vantage to colonial smelters and induced a able 
increase in the >h i crests of th< 
manufacturers were further guarded by the >tipuL 

mill or ot: 

.tiriK forge to :i a tilth. f id no furnace 

Baking steel " should be erected " in any of His 

Majr :iii-s in , \nuTica." Mills already established 

to be deemed a pulilir nuisance. The crTect of this 

legislation was a serious check to the development of iron 

main olonies. 


Wagon Roads. The surplus products of industry, 
beaver skins, tobacco, or lumber, mean much or little 

>ducer, according to his chances of getting them ^ 

to market I : . \ coast colonies were fortunate 

in their oimmertial op|x>rt unities. The short rapid rivers 

gland art ^able for freight boats 

more than a few miles above tidewater. By dint of nu- 

is carries the Charles, -imat. the Penob- 

and the Hous,r re made to servr the needs of local 

74 Industrial History of the Cnitnl S: 

traffic, l)iit the Cuniu-i ti( ut WU the only New F.ngland 
that played an\ vable part in general trade. 

Sea-going vessels made tlieir way up thi> river to I larl ford, 
where the IP and raft> and 

so conveyed to Windsor Locks. As the interior was 
settled, it became necessary to supplement the 
by road-. In [639 the (icneral Court of v 
ordered that each town >hould con-lruct a highway to 
connect with that of the adjoining town, and the Hay 
Road from Boston through Salem and Ipswich to Newbury 
built thi> year. In 1654 land communication was 
Mishcd with the Providence Plantations by means of 
the Common Road that ran through Pawtucket Falls and 
Rrhoboth. The Shore Road connected Providence with 
the settlements along [\ u . Connecticut coast and with 
York. The Hartford Trail struck into the interior through 
Dedham, Dover, and Medlield to Hartford, while the 
Lancaster Road was carried directly west. The road 
builders often took advantage of the Indian trails, widening 
the footpath to a bridle path and later to a wagon 
It was a task of enormous difficulty where able-bodied 
men were so few, and material obstructions were but little 
modified. Hills could not be leveled nor marches drained, 
nor could wagon bridges be built except in the immediate 
vicinity of a populous town. The Great Bridge from 
Boston to Cambridge was completed in 1602, but the public 
;ne coach was not put on the road till seven years later. In 
1704 Madame Knight made- tin ;>art of the journey 

from Boston to New York on horseback and told an 
amusing tale of the horrors of the route. Transpor: 
by land was much more costly than by water. The f : 
on a bu>hel of grain from Northampton by wagon to Wind- 
sor Locks was one shilling, from the Loci.- to Hartford by 
river scow, twopence, from Hartford to Boston by sailing 
vessel, sixpence. 

In tra;, -n by sea, New England had tin- : 

advantage of conveirrnt harbors. Wherever a river met 
the tide, seaports such as Portland, Port-mouth, H< 


76 /// History of the Um: 

and Newport prosecuted a thriving trade. dood> brought 
D I'rom tin- farms by boat or v. , .-.ded on to 

vessels bound for England or tin- \\Vst Indies. 
I nd Sound conduct ed the n md to the 

great harbor at the mouth of the Hudson. 

The waterways of N . and the middle col 

wen- unrivaled in the Hritish I he Hudson 

le for ocean \< U Albany, and the 

connection thence by way of Lake- (leurge and Champlain 
to t! -ily made. Where the Mohawk 

breaks through the Appalachian range, an elevated j)lain 
led to Lake Ontario. By this gateway the Irn|imix trail 
ed to the Hudson and thence to Manhattan, and the 
pioneers easily widened the trail into a wagon road. The 
Delaware and the Susfjuehanna were wateruay- of prime 
importance to the >ettlcr> of Pennsylvania a; Jersey. 

Bolles, The King's Path led from Perth Am boy to navigable 

Pennsyl- a j Philadelphia, and the Chesapeake and Delaware bays 
llTch. xvn. wcrc ' r(| nnected by wagon road. These exceptional trans- 
portation facilities gave rise to the ports of Philadelphia 
and Baltimore. 

Waterways served so well the purposes of the plantation 
trade that the men of Virginia and the Carolinas made 
little effort to build roads. The higher lands between the 
river bottoms were comparatively barren and were there- 
fore unappropriated, or, where included in a rant. were 
utilized as cattle ranges. Cross-country trade wa 
frequent and difficult, hence there were no towns of im- 
portance in the interior. Only where a produce-laden river 
joined the sea could commerce develop. Norfolk, 
Charleston, and Savannah were first-rate por 

Weeden, The Coastwise Trade. The fir>t commercial ventures 

were made in the Indian trade. The ,,>ld corn 

and other foodstuffs, beads and trinkets. >hirt- and blan- 

. to the neighboring rms, gun- 

Winihrop, powder and rum, though forbidden by the home govern- 

I. 132. us- ment, made a < Me item in tl <>f an Indian 

trader. The redskins offered in exchange game and furs. 

mfnt m. ;is/t i </. 77 

raver skjns was the price of a musket along the 
Moh.i liad trading posts on 

the K and Con >, the men of Boston 

on the Pcnobscot a I he colonists came 

harp co Ison 

and willi (he i 'tensions Doc*. Col 

came to an end in 1664, but th< .oyageurs had Hta * 

itol tlu up; the Great Lakes. 

r asccndam y with the Indian trit>es nu con- 

trol of tli md in the eighteenth century the 

traffic was wci: grossed by these skillful diplomats. 

The fishing stations along the New England coast 

e commerce. At Piscata- 

qua and Pern. 1 the fishing villages of Cape Ann, 

on Sable Island, and among tlu I r< iu h traders on theCana- 

. there was a steady demand for corn, salt pork, 

was a rea r the product 

k f shoes, and woolens. 

tobacco, leather, timUr, tar, and 
h \<u md was contraband Bradford. 

until 1004. lut nuu h tlandt ce was carried on. * 66 ' aSl - 

y mouth had a trading post at Manomct in 
v stored their goods, tobacco 

<l>roi: , planks and pipe-staves, sack and 

rum, and received in exchange sheep, beaver skins, sugar, 
and linen cloth, and their Connect 

were no less prosperous. In 1642 n tavern O'Cdhfkn. 

was built on Hast ! lake advantage of the custom 

rangers who touched .-. usterdam on 

way from New England 

The West India Trade. I the products of Wcedcn. 

and was there a i her country. I l4 *" 16 

Cerea and fi>! \iples, and so far 

ito com- 
Uw of 1689 Cdkad 

-her legislation forbade the importation into England 

78 Industrial History of tin* I'tut^i States 


II. Ch.XII. 

II. 49-S3- 




Annals of 
II. 289. 


I. 232-244, 

337-378 ; 

II. 552-594, 

and pork. Thr only profitable market for 
the surplus crops of N< In tin- Wot Indies. 

Tin-re her flour. ti>h, and lumber, her woolen and leather 
manufact re in great demand and could be ex- 

iged for sugar, molasses, cotton wool, dyestuffs, etc., 
the surplus products of a tropic dime. Brought back to 
Boston and Newport the molasso tde over into 

rum, and the cotton and dyestuffs into doth, commodities 
that could be marketed at a considerable- advance in 
price. The Bermudas sent potatoes and other vegetables, 
oranges and limes, luxuries for which the coast colonies 
were their only market. The exports of the middle colo- 
nies, grain, salt meat, and lumber, were also sent to the 
Caribbeans. The Southern colonies sent nothing to tin- 
West Indies and required nothing theme; hence trade 
with the i-lands was confined to the Northern ports. 

The Slave Trade. The monopoly of the Royal African 
Company was broken in 1698, and this lucrative com- 
mercial opportunity was thrown open to any -vessel flying 
the British flag. The traders of New England quickly 
secured their full share. Sloops from Boston, Newport, 
and Bristol sailed for the Gold Coast laden with hogsheads 
of rum. This was exchanged for captive negroes, or, 
perchance, for bars of gold and iron. The wretched human 
freight was carried to the West Indies and traded for sugar 
and molasses, or to Virginia, where m-groo brought a good 
price in tobacco. Either cargo could be disposed of to 
advantage on returning to the home port, and the profit - . f 
this triangular commerce were enormous. A slave pur- 
chased for one hundred gallons of rum worth L'IO brought 
from 20 to 50 when otTered for sale in America. v 
port could not, with her twenty-two still houses, manu- 
facture rum enough to meet the demand. 

Transatlantic Trade. Old World market- offerer! 
a steady demand for the agricultural products of America. 
Fish, timber, furs, and tobacco made the bulk of the home- 
bound cargoes in the seventeenth century; whale oil and 
whalebone, cider, rum, and rice figured largely in the 

DcvtlopmfHt under ; > 

exports of the eighteenth. Returning vessels brought 
1 woolen goods from England and Holland, 

oin, salt from Portugal, spices from the 
Mediterranea .uul fruit from Madeira and the 

Canary Islands. Each shipmaster (English, I > 
Spanish), selected the goods that he thought mmt likely 
urchasers in the colonies, a n an 

lean port, was fain to take in cxcha 
sola I es were there to be had. In the search 

for a ma; lu i,.!,... ( -s, beaver, or salt 

cod taken aboard, he might \Vest 

Mediu rranean as he saw fit A vessel not 
jxrnt years in this roundabout trade before 
returning t- her home ; 

Res Legislation. The colonial policy of Eng- 

1 uries was 
ted by the theory t 

whose in- HritMi interests. 317-3*8. 

No mines producing gold and silver had been discovered, 
hut m< >ney could be coined in trade. Tobacco, for example, 
by legislation of 1621, might be exported only i: 

>s and to English ports, where a duty varying from one 
ireepence a pound was levied. In due course this 3 -,i. i 
market was overstocked, and t i rom BT. 

>>und in r -pence per pound J47. 

in 1704. ACCO planti-r was denied direct access 

to the ( es ranged miuh hi- 

Coast \vi>e tr.iflic was :o a provincial di 

penny a pound, but this tax \\ ntly evaded. It 

was not a dit tter to load the hogsheads on to 

rs and take them out under cover of nijjht to the 
trader that lay off the cat ^ for the clande- 

freight. Smuggling, in the mind of the outraged planter, 
was aii entirely legitimate method of getting a fair price 
is crop, and 1 nen-of-war patrolled the coast 

in vain. The bayous of the Chesapeake nourished a breed 
of nimhle sailors who gloried in outwit customs 

officers. One of these pirates scuttled his schooner to 

8O Inttustrittl History 

I I I 1 I 











Development under Control 8 1 

and brought her to the surface again 

i the danger was past, none the worse for a ducking. 

The Navigation Acts. England's jealousy < h 

carrying trade determined .1 |>olicy ihat has had far-reach- 

:ttish aixl American shipping* In 1651 

enacted a law that was reinforced 

(166- lately after the Restor I he monopoly Wwdn. 

of British trade was given to vessels built and manned by * 
Hriti>h -ul.jt-.t-. No products of Asia, Africa, or America 
t I*- im|Mrted into Great Britain or any of her do- 

uropean products 

IK- im|x>rted euept in I-ingUsh ships or in ships 
owned in the count r\ ..}..:. the goods were produced. Andrew* 
All im|M>rts must be shipped dir- ry where 

they were grown or manufactured, and not from an in- 

rt. The provision that vessel- ^ any O 

clause act were to seizure and confiscat 

together with the contraband cargo, brought on war with 
Holland < loss of New Amsterdam, Holland's 

King tratlr with the British colonies shrank to meager 
proportions, and Ki.i-ii-h \essels, whether built in Great 
Hritain or in America, fell :hr Atlantic carrying 

trade. This practical monopoly of colonial commerce 
t an advance in freight rates, sina- the merchant 
ships were not at first adequate to the traffic ; but the loas 
was soon made good to the colonies in the new impulse 

Colonial Shipping. American shipyards had impor- Wright. 

vantages over those of Great Britain. Materials 
of the 1.. . be had at little cost. Masts Q, 

and planks of oak were supplied from primeval 
forests, everywhere there w.i for the making 

r and tir and hemp for cordage was soon 

< rivers furnished water power for sawmills 
and brought lumber down to the harbors where the ships 
were built and launched, while the lure^ity for exercising 
of crafts had developed in the colonists the 
Yankee knack that made them excellent shipwrights. 

82 Industrial History of t <t Sftttcs 






New England began to build seagoing after 

1640 when, the tide of immigration fn : 
checked, few British ships came to the Northern colonies, 
and it was found necessary to provide for tin- needs of 
trade. Al N'ewburyj ><>rt and Salem on the V 
coast, at New Bedford, Newport . Warren, and Providence 
on Bu/./.trd- and Narragansett bays, men set to work topro- 
fol tin- expanding commerce. The supply of ti>hing 

.'.haling vessels, and ban|iie> for the DOftSt 
trade was soon sufficient for domestic needs, and 

even built to sell abroad. The shipyards at New 
London on the Thames and New Haven on the Connecticut 
equally busy. Poughkecpsie and Albany on t lu- 
ll ud-on furnished vcaeelfl for the trade of New York. At 
Wilmington and Philadelphia on the I)elaware and in tin- 
harbors of the Chesapeake, boats were building a; 
On the eve of the Revolution the annual output of the 
At la: \ was estimated at eighteen thousand ' 

New England launched seventy sail, New York twenty, 
Pennsylvania twenty-five, while Virginia and Maryland 
combined produced but thirty vessels and South Carolina 
but ten. In spite of the ample supply of raw materials 
the industry developed slowly in the South, because capital 
and industrial enterprise were absorbed in agriculture, 
and because the Southern colonies experienced no 
decline in commercial intercourse with Britain as fon ed 
the men of the North to provide for the carrying trade. 
Planters sometimes owned their own vessels, but they 
usually content to rely on the ship sent out by their 
London factor, or the chance visits of the Yankee trading 

The Enumerated Articles. The Cavalier Parliament 
a step farther than the Roundheads in securing the 
dominance of British interests in America. A cl. 
added (1663) to the Navigation Acts requiring that certain 
enumerated commodities might be exported from the 
Hritish colonies only t< ilritain and her domii 

Cotton, indigo, fustic, and other dyewoods used in the 

>nt'nt under British Coti: 83 

making of cloth were limited to the home market in the 
sts of manufactures. Sugar, tobacco, and ginger 
be exported din it, hut must 

pass through a British port that the government might 
secure the customs duty and the merchants a rnrnmtiaioo 
mi the transfer. Thus far the limitation affected the West 
India tra< ! tie of these commodities except 

tobacco was produced on the mainland. But other prod- 
ucts were added to the list from time to time as Br 

sts seemed to demand: molasses, rice, and naval p^ CoL 
1705; copper, beaver, and or in 172:; n ; , t .of 

lumber, raw silk, and peariashes - Nrw Vork. 
in 1704. Vessels laden rated goods must give ! 

bond he cargo in an English port whence it might 

be shipped t< .t. 

1663 restricted also the import trade, 
were the staple products of the colon ie> limited 
to the English but goods imported from Kurope 

he brought via Kngland that duties and commissions 
t be collected before the cargo was reshipped to 
;ca. As a concession to colonial interests, certain 
essential ties were exempted from this require* 

fisheries of New England might be im- 
ported direct from Spain and Portugal ; wines from the 
Westt .is need not make the roundabout journey 

to an English port; provisions, horses, servants, and 

n<l without pay- 
"11 to t! chants. 

Smuggling. The object of this commercial policy was Wndca. 

it. The ! < >r colonial shipmaster was enabled 

to charge hi^'h freights because of the exclusive privilege 
i* colonial goods. The I merchant was 

- profits on colonial trade MIKV the major part 
Kirts and imports, whether from Kurojx- >r the Or 
>a-thr arehouses. ! i*h man- 

se!! hi> finished goods dear :ical monopol 

the colonial market That this policy, if actually put 

84 Industrial History . 

II. 55&-SSO. 

Docs. Col. 
New York, 






into execution, must work injury to America by addi: 
the costs of transport at inn, reducing the price of what 
the colonists had to sell, and advancing the price of 
what they mu.-t buy, was not so apparent to the coin- 
prehension of the statesmen who de\ -i>ed the>e regulations. 
Colonial industries escaped ruin only because the acts 
evaded by a well-developed system of smuggling. 
Many a hogshead of tobacco found its way to Holland and 
France without paying tribute at an Fngli-h port. Y< 
laden with freight from the Continent lay offshore in the 
hborhood of Cape Ann for weeks together, while 
dories and fishing smacks and lumber scows plied to and 
from, conveying the contraband goods to Gloucester and 
Salem. In 1700 one third of the trade at Boston and 
New York was in direct violation of the law. Royal 
governors and revenue officers protested in vain, for smug- 
gling was upheld by public opinion, and some of the most 
reputable men of the colonies wen engaged in this illicit 

The Molasses Act. More irritating still to the men 
of New England was the legislation that concerned tin- 
West India trade. Merchants had found greater profit 
in commerce with the French islands and Dutch Guiana 
than with the Barbadoes and Jamaica, for the English 
islands could not take all the goods offered by the Yankee 
traders, and profits had declined. Furthermore, the French 
sugar and molasses could be had at lower prices than the 
Jamaican. The French planter was the more economical 
producer, and his molasses was a drug in the home market 
because of a law excluding rum from France. Hence a 
brisk trade with these foreign colonies had developed to 
the prejudice of Great Britain's sugar islands. Protests 
were forwarded to the home government, and Parliament 
undertook to remedy the grievance of the English pi a; 
A bill passed the House of Commons (1731) that pro- 
hibited the importation of sugar, molasses, and rum from 
any foreign colonies into Great Britain, Ireland, or any 
of the American colonies; also the exportation of h 

under Control 8$ 

and lum! -ris. The House of Lords 

olonies could 
s if this market 

ieir agricultural products was cut off. The result of 
tin- debate was a >iae measure that passed both 

r securing and encouraging 

duties were imposed on foreign 
sugars. Rum and spirits were to pa> ce per gal 

molasses and sirup sixpence, sugar ir. shilling^ per hun- 
dredweight. Trade with tl. \\ \\\-t Indies would 
\ serious check but for the general practice 

Credit Money 

As the population of the colonies grew and business Weedea, 

:, the demand for capital with which 
to develop the latent resources of the country and for 
use in trade stiv < r warn- 

puni, bullets, : > products could serve the money | 

need of these thriving communities. In 1690 Massachu 
'.it upon what se< :nen of that day an inex- 

tain of wealth in the issue of credit money. Bullock. 
;>edition agai: -burg had failed, and the **!. 

soldi* have been rewarded out of the booty, Davit, 

The treasury was Currency 
ovcrnnu-nt < d to meet its obli- i n 

re issued to the 
DOO. hut the notes bore no interest and were 

re was some sk< 
as to their ultimate vi i-d in ex- 

IRC at bi: and fourteen shilling in the pound. u rt .oiu.&. 

The Rovernn . succeeded in bringing the paper 

;>ar by making the bills re. 'axes 

\ advance :i. I the public was 

tes would he redeenud in the 

hut t!; i redemption was 

8(> Industrial History of the United S: 

extended repeate<lly until the holders of tin- note - !< 
discouraged. Moreover, the bills \ il u sunn as 

redeemed. In 1711 another expedition to Canada rent 
necessary a new issue of bills of cm lit. 
became responsible for note- t<> the amount of 1*40,000; 
while New York and Pennsylvania, joining in this expedi- 
tion, met their proportion of tin- expense l.y issues of 
10,000 and 2000, respectively. By 1733 Rhode Island. 
Connecticut, and New Hampshire had resort to this 
attractive expedient for meeting expenditures to which 
income from taxation was inadequate, and the Southern 
colonies soon followed the same pernicious example. 
'en. The issue of paper money by a fully established govcrn- 

11,473-491. ment J s a legitimate device for meeting a financial emer- 
gency when resort to immediate taxation is impracticable 
and when the obligation incurred is guaranteed out of the 
revenue of subsequent years ; but the expedient is attended 
with grave dangers. It is always easier to contract a debt 
than to cancel it. The needy colonial government 
ferred payment from time to time until public confidence 
in the issue was weakened and the bills began to depre- 
ciate in value. The loss fell on bankers who held the notes 
and on merchants who were obliged to receive them in 
exchange for goods. Farmers, on the other hand, who 
were purchasing implements and stock, thought the country 
needed more of this inexpensive money. The supply of 
capital was far short of the demand, and borrowers were 
obliged to pay interest as high as eight and ten per 
It was urged that the government might suitably meet the 
emergencies of individual citizens by issuing bills of 
for the purpose of making loans at a reasonable rate of 
interest on real estate security. This seemed a brilliant 
plan, since it would meet three crying needs. It pro; 
to furnish an income to the government, capital to land- 
owners, and currency to the people. The arguinc: 
amply convincing to the legislators of that day. and in 
1714 the General Court of Massachusetts directed the issue 
of 50,000 to be loaned to private persons at five per cent 

Developmtnt ttn Control 87 

The loan wa- years, and the borrower under- 

ay back one fifth each year, giving a mortgage ^. 

amount of these Massachusetts loan- ,000. PI. n. 

The other colonie adopted measure 

he general demand for capital, l.ut the results 
were disappointing. The farmers were usually unable 
to mert their payments, the governments got i ictal 

and failed to redeem ; bills 

>lisrepute, and the whole country from New 
shire to Georgia was flooded with a depreciated 
paper currency. The several issues ot 
legislatures were i n hopeless confu- 

l l; 

to veto the bilK authori/ing the issue of credit money, 
opposition was \ be irate legislators re- 

fused to vote supplies, withheld the governors' salaries, 
and so forced their approval of the popular measures. 
t was made to restore full purchasing power to the 
discredited currency by declaring the notes legal tender in 
pay n rivatc debts and by imposing heavy penal- 

ties on creditors refusing to receive the:- iess men 

>f the colonies and merchants in London made vehen 
protest ag. ^c force laws. 

the ;>a; of Massachusetts exchanged 

.g at one eleventh of its face value, that of New 
;>shire at one twei th, that of Rhode I>land at 

v -sixth. The depreciation was less in the Middle 
hern colonies, but everywhere the injustice done 
to capitali-t> and to widows and minors <!< on 

vd funds was great and increasing. The year fol- 
.1; Massai redeemed her outstanding bills in 

the silver accruing from the Ixmishurg indenuiity. and 
soon after declared ^\\\^ the only legal tender in 

payment of del.t. \\hile the . e neighboring 

ties was rigorously excluded. The commercial ad- 
ages of specie were soon evident in an access of pros- 

The West India trade had 

SS Industrial History of the United St 

centered in Newport; much of it was now transferred to 
Boston and Salem. Parliament reenfnrced the a. lion of 
Massachusetts by prohibiting (1751) the four Northern 
colonies from issuing more bills of credit except in the 
Ripley, emergency of war. In 1703 this prohibition w. 

^ tended to the remaining colonies, and tlu- legal tender 

Virginia, quality of the bills was limited to the period originally 

153-162. fixed for their redemption. Thi- : - dictated 

by superior financial wisdom, hut it was bitterly resented 

by the advocates of a cheap and abundant currency. 

Cast at Lynn in 1645 

('II IV 


TAB French and Indian Wars (1754-1763) had mo- 
<>us consequences for the American colonies. In the 

Peace of Paris, the claim of France to the St. Lawrence, 
the Great Lakes, ami t! .try between 

the Mississippi River and the Alleghanies was surrendered feer, 

to Great Britain. The t: .sts, forts, and mission ^* 

stations were abandoned by soldier, priest, and voyagcur, p bttcy( 
and the long rao :inated in the trium; 

tin- Knuli-h. triU-s were less to be dreaded H^^,- 

now t! rprcsentatives of a hostile power no longer Bnddock's 

:ig of British ***** 

garrisons at strain: ts Duquesne, Niagara, and ( 

At the MI - in exchange for 

Havana, taken from lur during the war, and the south 
front: i rices was extended to the Gulf. 

>kees soon became convinced that mce 

of th .m could no longer be resisted and withdrew 

beyond th .u'ns. 

years' contest had fully demonstrated the Mady. 
capa* ies for s< 

campaigns they had furnished t e thousand 

<i. armed, and paid out of appropriations 

M ore than four hundred 

re fitted out in American ports, and the 

damage they im! trihuted 

in no slight degree to the final : hese services 

had been gratefully acknowledged by the British Parlia- 


90 Industrial /its/err of the I'nited States 
ment. and large :ii>pn)priations were voted in partial 


The Imperial Regime. Great Britain emerged from 
^even Y no longer an island kingdom, hut an 

ie II'!' col.mial i >ossessions, not only in America, 
but in India, had been enormously increased, and her 
.smen were forced to devise a system of government 
commensurate with these new responsibilities. A har- 
monious administration of colonial interest.- and an ade- 
quate scheme of colonial defense were of prime importance. 
Both the lords of trade and the king'> cabinet were con- 

III, Ch XII \inccd that the regime of " salutary neglect " mu>t come 
to an end, and that vigorous measures must be taken to 
bring the American colonies under effective imperial >u- 
pervision before they had quite outgrown such control. 
The commercial regulations, so long flouted and evaded, 
must be enforced, a standing army of not less than ten 
thousand British regulars should be stationed in America, 
and its maintenance provided, in part at least, by 
imposed upon the colonies. George Grenville, the prime 
minister, and Charles Townshend, president of the Board 
of Trade, were primarily responsible for the new policy. 
They were, however, resolutely supported by George III. 
a king who took his functions seriously and to whom the 
royal prerogatives were sacred and above dispute. 

I'itkin. The authority of Parliament in the affairs of the coh 

had never been defined. The America i. ing 

a measure of self-government far beyond that enjoyed 
by eighteenth century Englishmen. The several colonial 

Ramsay, assemblies were accustomed to legislate concerning all 
[{ matters of internal interest, and their a< tfl had been called 
in question only when they affected Brit ish trade. Internal 
taxes and customs dutie- for the purpose of raiding revenue 
had hitherto been laid by the >ame authority and applied 
to the expenses of local L r <>vernment. Parliament had 
enacted commercial n CW to securing 

monopoly of trade with the colonies, and dulie> had been 
imposed at colonia? ports in order to prevent the ; mpor- 

9 1 










i <>f u'otxls that came into competition with Hritish 
< >t>. Internal taxation. h< ue duties 

been attempted. (Irrnvi decessors, 

Waljx>le and Pitt. had pn.posa' 

litic. Hut tin- war had entailed lu-avy burdens ; 

: Britain was Ma^erim: under a di : . ;,ooo,ooo, 

half of which represented military expert ;rope 

and America, and the Kni:li>h ' In-winning to 

protest. '1'he colonii>, on the other hand, had been in- 

:m; in wealth and population with extraordinary 

rapidity, and the costs of lo. iment were li.u'ht. 

They were deemed abundantly able to m< 

tion of the expenses henceforth to be incurred in the'r 


The Sugar Act. The change of pol : cy was indicated in 
a series of parliament,: >J>.MML: to r. 

MUC from the " American Plan- ' 

laid in i;ss on >u.^ir and molasses brought into the colonies 
from the French and Spanish West Ind meant to 

be prohibitory, and no revenue was anticipate 'ircd. 

In 1764 these duties were cut in half in i! tion that 

the distillers could pay the rates without unduly raiVin.u the 
price of their rum. The preamble to the Su.L r ar Act 
tin necessity of providing for the defense of th< 

iM>n for reducing the imp. 
The Sugar Act imposed duties on other imp 

nlkft, Cambrics, and IrnHaw>. The rate> 

not so high as seriously to dimiirsh importation, and, 

j levied on articles of luxurious consumption. I 
paid without much protest. s duty < 

molasses, for tlr- jeopardixed an important business inter- 
est The duty of threepence a gallon, once ad- 

ed the price of molasse per cent and abs<> 

all the profit of the rum distillers, since the price of rum 

i not be increased in proportion. Order- for mo! 
withheld, and the merchants, having small 

turn cargoes from the West I detained their 

vessels in port or sent them eU-wherc. The lumber 


at and fish, with wh trader would 

it U-KKiriR I- i 'rices 

.ml tin farmers lost their best market. Won 
thr.\\n d hands, hut 

sailors and lumbermen, distillers and gristmill employees. 

vocate of colonial privilege, was moved to serious protest 

against the disastrous effect this ruthless tax would have 

D the fisheries of New England. "Our pickled fish 

ly, and a great part of the codfish, are lit r the 

West ! lands cannot take off 

the (juantity taught ; the other two thirds 

be lost or sent ^'n plantations, where 

molassr-. is ^'i\i-n in exdttOge, 'I he duty on this artule 
will greatly diminish i' it ion hither, and being the 

only article u! fish, 

a less quantity of th be exported, 

the obvious effect of which must U- the diminution of the 

West Indies, hut to Kurope, 

fish suitable for both the> > being the produce of 

therefore, one of these markets be 

other cannot be supplied. The loss of one is the 

loss. ' ith the loss of eit 

Bernard believed that a tax of one penny a gallon could 

be collected without jeopardizing the business interests 

'.Vest India trade checked the inflow 
in and thus deprived merchants of the silver 
d to meet their foreign obligations. The require- 
that the obnoxious tax should be paid in specie was 
peculiarly irritating in view of t hat the sole source 

was stopped by means of these very duties. The 
proh issues of credit money, a measure 

in itself, but ill-timed, aggravated the difficulties of 
of paper money began to run 
ins: imputations of silver ren- 
-e to specie difficult Domestic trade was 
seriously embarrassed, and business men the length and 

History of the i'nitt,: 


II, 671. 


breadth of the country were driven to the conclusion that 
thrir industrial in 1 >;ild not In- regulated to advan- 

tage by a legiMaturr thnr thousind miles distant, mo,t 

hos t . members knew nothing whatever of A 

.nything more were needed to provoke hostility to 
the Sugar Act, it was supplied in tin- p: 
enforcement. The laxness of the years in which ft] 
penditure of 8000 in collection had produced a revenue 
of 2000 was now replaced by great vigilance. Customs 
officers were required to reside at their posts and to render 
systematic accounts as guarantee of efficient scr 
Writs of assistance authorizing collectors to search private 
houses suspected of harboring smuggled goods had been 
granted in 1761 to check illicit trade with Canada, and they 
were now used with effect for inspection of the West India 
trade. The war vessels stationed along the coast 
ordered to assist in the capture of smugglers, and their 
officers were sworn in for the revenue service. The courts 
of admiralty were empowered to try cases of evasion with- 
out recourse to jury trial. Serious friction was the in- 
evitable result of these drastic measures. 

Several enactments calculated to lighten some of the 
limitations on colonial trade were adopted in 1705 and 
1767. The suspension of the import duties on grains. 
salt meat, fish, and dairy products sent from the American 
colonies was probably suggested by scarcity in Kngland, 
but the concession was none the less advantageous to tin- 
farming communities. If continued, it might go far 
ird offsetting the loss of the West India market. The 
removal of the duty on whale fins was intended to placate 
New England. An olive branch was offered to the Southern 
colonies in the shape of bounties on hemp and tlax and raw- 
silk. American hides, too, were exempted from duty in 
British ports. Rice, hitherto an enumerated commodity, 
not exempted, but it was allowed (1730) to go to the 
Spanish colonies as well as to European ports south of 

/// Assets of tk* Revolution 95 

The Sump Act. The amoui <d from 

the (1 Sugar Act proved disapp* 

ini.'. -vas hopeful that 100,000 a year n. 

be secured by a stamp tax. Such a measure was already 
ircessful open 1 iritain, and it would, 

he believed, work well in the colonies. \\, 1765, 

isscd both houses of Parl 

of tin- members anticipated any 

;liy in its enforcement. Stamps varying in cost 

from h.ii i'lo were required on licenses, deeds, 

ids, wills, etc., .'. Ming printed fur sale, 

as books, pamphlets, almanacs, newspapers, and 

;ig cards. nhutors wereapp* hose 

amps but to spy upon 

jiients. They were ordered to frequent the law 
offices and the courts and t liters' shops and 

report all cases of to affix the 

proper stamp was punished ly ime> varying from 1*5 to 
ns selling or hawking almanacs or news- 
papers not duly stamped were rty -hillings. 
j>enalt\ it ing was death. 

\ct pro- 
Men refused to I my the sumps, pre- 
ferring to leave contracts unrecord 

i<> accept dot 'he official seal. 

head printed in place of the required stamp. Boxes 

he hate.: | of imjicrial air 

Imrned <>r thrown into the sea I Sootl l rolina the McCndy, 

courts were closed because the stamps could not be used 

-ton the stamp di>trit>ut lorced by threats 

e to resign his dutii-. the stamp office was de- 

.1. and the house of the lieuten. nor was 

1 t.. the ground. The citizens of rk were 

M their rejed tax. In 

the coa^t the efforts of the officers to 

ips were successfully resisted. 

-truirirle that followed cannot be accounted for on 

96 :tstniil History of tht I *////</, 


Stamp Act 

Bish.. P . 
I. 365-383. 




economic grounds aloi .. mposcd a serious bur- 

den on certain business interests, hut the political principle 
involved was far more important than any money loss and 
affected all classes. I h< colonists believed that the) 
entitled to all tin- rii:ht> of Knglishmen resident in the 
Briti-h Isles, and that they should not be taxed by HI. 
sembly in which their interests were- not represented. In 
this view they \\eresupported by liberal-minded statesmen 
as Pitt and Burke. George III and hi> ministers, on 
the other hand, had scant sympathy with popular ri 
\\hether in Kngland or America, and held to tl 
theory of colonial dependence. A series of resoluf 
drawn up (1765) by a congress of delegates from nine of 
the thirteen colonies, was submitted to the king and to 
both houses of Parliament, but no answer \\a- vouch 

Nonintercourse. Argument having failed of effect, the 
colonists sought to reach the ear of the mother country 
through her trade interests. A form of protest very like 
the modern boycott was determined on. The merchants 
of Boston signed an agreement to import no goods from 
Great Britain until the obnoxious legislation should be 
repealed, and the merchants of New York and Philadelphia 
adopted similar resolutions. Retail dealers undertook 
in turn to sell none of the boycotted imports, and their 
customers, catching at this chance of e their in- 

dignation, agreed to buy articles of domestic manufacture 
only. The Daughters of Liberty, an enthu-i ni/a- 

tion of ladies, resolved to purchase no more British goods 
and to wear only homespun, and these loyal Amer 
conducted spinning matches where prizes were offered for 
the best day's work. The senior class in the " university 
at Cambridge " agreed (1768) to take their degrees "dressed 
altogether in the manufactures of this country." The 
students of Rhode Island College imitated this patriotic 
example in the year following. 

Meantime a systematic el: !>eing made to develop 

domestic manufactures as a substitute for impor 1 
As early as 1751 prominent riti/en- of Boston had 

//; . , ~ 

t" a society for " Encouraging Indu 

o to aid in establishing a " Manufa. i*e." 


in rhil.ulrlphi.i in i;; , In these and many smaller towns 

md woolen doth of a quality approaching the English 

goods was made up in < onsideral .ties. The supply 

tin prodiu ti..n ,.i these raw materials was urged upon the 
farmers. The killing of lambs was discouraged, and hi. 

r sale were boycotted by the 

The royal governors and other British officers under- 
rated this movement, representing in their reports to the 
Board of Trade that the actual a hi- 
established manufactures were slight ; but the ministry tlu- American* were in earnest. 
demand for Knglish goods fell off alarming 

d to take the risk of shipping the tabooed 

H lit ie-. and vessels sailed v a cargo or stayed 

t. thus involving their owners in financial difficulties, 

.rers realized the loss of the A 

in diminished sales. Unable to dispose of the goods in 
they closed their mills, and thousand- men 

Petit "Hx for the repeal 

legislation that had occasi< lesspara 

were forwarded to London, not only from colonial legis- 
> hut from I liants and manufacturers, 

Factors found the collection of debts from in- 

creasingly difficult and added their plea to the ger 
prote Board of Trade was beset by the angry 

reprc i of grea >s interests, and petitions 

poured in at the rate of a dozen a day. 

The Repeal. The Stamp >ecn adopted almost Ucky 

without discus-ion. hut the proposition to rescind brought In - 

the longest est debates that had < 

taken place in the British IV tt. the 

:it )i the imp- ;>roposed that the 

98 Industrial 1. f the L'nittd Si 

Stamp Art should be repealed absolutely, totally, and im- 
mediately, and that tin- rea>on for repeal should IK- a igned ; 
namely, that it was erroneous in principle ; hut even this 
warm friend of the colonies urged the assertion of Parlia- 
ment's prerogative. "Let the BO authority of 
this country over the colonies be asserted in as strong 
terms as can be devised, and be made to extend to 
point of legislation whatsoever; that we may hind their 
trade-, conline their manufacture-, and ezerdse every ; 
what-oever -except that of taking their money out of 
their pockets without their consent" 

Franklin's Franklin, then in London as agent of Pennsylvania, 

was examined before a committee of the 1 louse of Comn 

as to the temper of the Americans. He stated that they 
would never submit to the new tax unless compelled by 
force of arms. " The Stamp Act says, we -hall have no 
commerce, make no exchange of property with each other, 
neither purchase, nor grant, nor recover debts; we -hall 
neither marry, nor make our wills, unless we pay such and 
such sums; and thus it is intended to extort our money 
from us, or ruin us by the consequences of refusing to pay 
it." To submit, he argued, would involve the colonies 
in future requisitions, even more onerous and arbitrary. 
Early in 1766 the Stamp Act was repealed because, a> tin- 
preamble recites, "the continuance of said act would he 
attended with many inconveniences and might be pro- 
ductive of consequences greatly detrimental to the 
mercial interests of these kingdoms." But the kind's 
party had no intention of abandoning the principle at stake. 

Attempt to vindicate Imperial Authority. JuM I 
the repeal, Parliament passed the Declaratory Act, stating 
in explicit terms that the "Colonies and Plantation- in 
America have been, are, and of right ought to be subor- 
dinate unto and dependent upon the imperial crown and 
Parliament of Great Britain." Ksteeming the Declaratory 
Act an empty threat, the colonists rejoiced in the with- 
drawal of the stamp a victory for ( -institutional 
rights. The South Carolina Assembly voted to 

//. '/> 

res in securing the repeal, the Quakers of Philadel- 
ratcd the king's birth < w suits made of 

.ind gave :uespun to the poor, v 

and Boston the merchants renewed their 
orders for English goods. The ultimate victory was, 
<> means assured. The king and his cal 
ml uix.n vindicating the righ 
c a revenue from the colonies. La t 
1766 the Sugar Act was revised, the duties Ix-ing lowered ; 
olasses I t-pence to one penny a gallon, 

in the expecti irns would increase. The 

expenses of tl garrisons were provided for in the 

roops in specified dis- 

and required tin- inhabitants to furni>h them furl, 

and lodgings. 'I i\ was deeply 

resented, esp* ., Boston, and Charleston, 

tlu- refusal of the people to contribute was indorsed 

rial authority determined the 
.ment i ic measures. Townshend, now the 

reed through Parliament 
:*. The New York Assembly was 
suspended from legislative functions until the Mutiny 
iould be respected in i mmissioners 

is were sent to America with powers adequate 
to the enforcement rade regu A new reve- 

.rin imjxKol duties on glass, painters' colors, paper, 
tea, v, .iiid fruit inijxjrtctl into the colonies and the 

i[>ated from these imposts duties (40,000 
a year) was to be applied to the pa : the salaries 

of the kind's rrpn^i-ntativrs i a, the governors 

they might 1 \ be independent 

of thr as>* -inblies. The duties of the Townshend Act were 
not hih. but th y were lc\ncd on articles of general con- 
sump: added to the cost <>f living for all classes 
proposal to n-ndir governors and 

IOO Indnst) A'/J of tJic I 

The Regu- 


I, 372- 


II. Ch. 



unpopular than provision for a standing army. The men 
appointed to colonial office were often mm- favorite- and 
younger sons of the lords of trade, and they neglected their 
duties. In the " back country " of the Carolina* la 
ness and crime were actually encouraged by tin- b 
v <>!' the just:. 

Renewal of Nonintercourse. Resistance to this new 
manifestation of the imperial policy was even more wide- 
spread and >y>tematie than that (ailed out by the Stamp 
Act. The nonimportation movement of i766 % had 
the work of individuals or of voluntary association-. The 
movement of 1767 and 1768 was sanctioned by political 
bodies and was therefore official. The men of Boston in 
town meeting assembled resolved that " the e use 

of foreign superfluities is the chief cause of the present 
distressed state of this town, as it is thereby drained of its 
money ; which misfortune is likely to lie increased by n 
of the late additional burdens and impositions on the trade 
of the Province, which threaten the country with poverty 
and ruin." Citizens were urged to abstain from the pur- 
chase of the taxed commodities. The General Court of 
Massachusetts indorsed Boston's action by the resolution 
that "this House will by all prudent means, endeavor 
to discountenance the use of foreign superfluities and to 
encourage the manufactures of this province." Similar 
resolutions were adopted by the legislatures of Connecticut, 
Virginia, New York, Maryland, and North Carolina. The 
artisans of Charleston under the lead of Christopher 
Gadsden assembled under the Liberty Oak and adopted 
nonimportation resolutions which were enforced by boycott 
of merchants importing English goods. More backward 
colonies, such as New Hampshire and Georgia, and more 
conservative, such as Rhode Island and Pennsylvania, 
entered into the movement later, and under compulsion. 
Committees of correspondence and supervision kept wat h 
upon imports and threatened refractory parties, whether 
colonies or individuals, with nonintercourse. 

The agreement to abstain from the purchase of English 


of tlit 


goods was ei --I in the <*4onift where 

manufactures were sufficiently developed to supply im- 
mediate needs. The value of Fnglih goods imported 
New England was 419,797 in 1768 and but 207,993 
in 1769. New York imported 182,930 worth of goods 
in 1768 and l>ui I'y-i.yiS in .wing year. The 

patriots of Pennsylvania succeeded in reducing her im- 
4*2,107 in 1768 to 199,916 in 1769. But 
in the Southern colonies the most strenuous measures 

N ! ! ! ! I L ! 

no* 1764 TO 1776 

Tk V!'J 

could not prevent considerable rtondfytinf trade. Plant- 
ers' supplies were expressly excepted from the South 
Carolina boycott. Importation of English goods actually 
advanced between 1768 and 1769; in Maryland and 
iiia from 475,984 to 488,362, in the Carolinas 
from 289,868 to 306,600, in Georgia from 56,562 to 
58,^40. Ilu total falling off 129 was, ho\vi 

sufficient to produce a serious impression <>; h in- 

A corresponding >hrinkai;r of 1*191,248 in cx- 
i Nes advanced thi rican 

good lish consumer and manut. The 

experience of 1765 was renewed. The seaports and the 

102 Industrial History of the Vn .<.' t -s 

factory town- -uit remonstrances to the government and 
besieged the House of Commons with pi-tit ions, and the 
ministry was finally obliged to yield. The Townshend 
Act was repealed (1770), but tli a pound 

on tea was retained as ipcrial authority. 

The Tea Tax.- d by th<- boty, tin- 

agitators relaxed the boycott on \ goods, 

merchants gladly renewed their orders, and consumers 
rejoiced in the prospect of finer cloth than domestic looms 
could produce; but the embargo 01 
tinned. It had been the polity ol" the g>-. 
a monopoly in this popular beverage to the East India 
Company. All teas declined for the colon 
through an English port and pay duty there ni nm 
America. The colonists had been accustomed to e 
this irksome regulation, and fully nine tenths of the million 
and a half pounds annually consumed in Am- 
brought directly from Holland or the Orient. The re- 
strictive regulation was now enforced, but to render 
monopoly more palatable the tax of a .shilling a pound, 
hitherto collected at the Briti-h customlv 
mitted in case the tea was consigned to an American im- 
porter. The East India Company's tea might thus pay 
the colonial duty and yet retail at a lower price than 
charged for the smuggled article. The revenue ai 
pated (16,000 per annum) would be but one fourr 
the sum remitted in drawbacks, but the British govern- 
ment was determined to assert its authority despite finan- 
cial loss. The colonists, on the other hand, were equally 
determined to vindicate their right to self-taxation. I 
shiploads of tea arriving in Boston harbor in December, 
1773, were boarded by a party of prominent (it; 
more than three hundred die-is were thrown into the 
At N and Philadelphia the ships were not all- 

to land their cargoes and were forced to carry the tea back 
to London. At Charleston the b :ken from the con- 

signees and stored in cellar-, where it molded and b 
unsalable. Later import at ions were thrown into the harbor. 

//. 103 

It u.i int the Americans objected to the tax 

.1 as strenuously as to the stamp tax, and that it could 

rged coo- 

measures, but til-- Ding's ministers believed that 

was no choice between the enforcement of the law 

and com i render, and they determined on enforce- 

was selected as an exam pie 1 he port was declared (dosed 

t>ecause the o majesty's 

rets cannot be saf i on there nor the t ustoms 

payable ialv collected." Landing and 

merchandise was forbidden tint, 

and men-of-war were detailed to maintain a blockade. 

The customhouse was removed to Salem Imsi- 

ness prospen ton depended alm<> y on 

>w threatened her very existence. 
The Boycott Complete. The cause of the beleaguered 
AUS immediately espoused all along the coast. Salem 
i-d to Boston merchants t 

and warehouses. Subscrip : the un- 

vere taken up in New x 


and South Carolina M rice. 

A solemn league and covenant was signed by 
citizens who Umnd themselves to abstain from all 
o with Great Britain until the coerci 
1 \>c repealed. The Virginia Assern .i^uist, 

1 that no English goods should be imported 
rgoes already ordered had been 
recei glance committees were appointed to 

force this agreement, and offenders were to be blacklisted 
as tl. s of liberty. This third suspension of com- 

th Great was generally opposed by the 

learned by exper -\v heavy 

were the losst Philadcl; 

where the bvatisl n to the 

edient was determined, and t-se ports 

held .vould destroy the 


tt/ History </ tlic ( V//W 


II, 764-770. 



; he lx>ycott. The embargo jx)liey was hotly de- 
bated in the Continental Congress convened at Philadel- 

in September, but in the end. a noninten- 
nonconsumption resolution was adopted to ta 
December i, 1774. Tin- prohibition covered all Ki. 
goods, East India Company teas, wines that had paid 
duty in British port-, -u.uar and molasses from the Briti-h 
West Indies, and slaves brought to the colonie> in Briti>h 
vessel.-. In case the protested grievance- had not been 
redressed in the interval, exportation of colonial products 
to Great Britain was to cease after September 10, 1775. 
(Rice was exempted from this embargo at the request of 
the South Carolina planters.) It was confident ly e.\j >< 
that the inconvenience and distress occasioned in England 
by the loss of the colonial market would bring the govern- 
ment to terms. The boycott was more vigorously en- 
forced than in 1765 or in 1768, and English imports de- 
clined from 2,500,437 in 1774 to 201,162 in 1775; but 
without effect. The king and his ministers were con- 
vinced that to yield now would be to forfeit for all time 
the claim to imperial authority. 

Nonexportation was attempted in due turn, but this 
phase of the nonintercourse policy was even more difficult 
to enforce. In the determination to find a market for their 
produce, planters evaded the vigilance committees quite 
as skillfully as they had evaded the king's officers. 
Virginia sent 73,000 worth of tobacco to England in 
1775, and the Carolinas and Georgia 25,000 worth of 
rice and indigo. This was, however, but one tenth of 
the exports of the previous year. The shrinkage in total 
exports between 1774 and 1776 amounted to 1,269,882. 
The sudden collapse of the American trade, which had 
hitherto meant one third her maritime commerce, produced 
serious industrial disturbance in England, but the effect for 
the colonies was even more disastrous. Merchants 
ruined, farm produce glutted the dome-tic markets, and 
workmen suffered, for many industries were at a stand-till. 
On the very eve of the Revolution the accustomed supply 
of arms and ammunition was suddenly cut off. 

/>. Revolution 105 

le cipumd in the 

Declaratory Act, Parliament proclaimed M machine It! 

in a stale of rebellion and ordered additional troops to 

America. The fishermen of New England were denied JQI-JQO. 

access to the Grand Banks, and at the same time (Ma 

1775) trade was interdicted between the rebellious colonies 

and all or fci than those of Great Britain, Ireland, 

and the British West Indies. Nine months later all i: 

course with the colonies was prohibited. American ves- Pfttin. 

sels when captured on the high seas were declared forfeit, * * U 

their cargoes were liable to seizure, their seamen might be 

impressed into the royal navy. In the following March 

the ( il Congress authorized American vessels to 

teers and so to carry on an armed trad- 
defiance of the embargo. " The die is now cast," wrote 
the king. I be "Ionics must either submit or triunr 

olonists, on their pan, were being . the con- 

viction that nothing short of < < -eparation would 

insure their interests against prejudicial legislation. 

Declaration of Independence. 1776. The consistent Addimto 
endeu to render the colonies J^JjJ 1 " 

a source of profit to tin- mother country had imjx>sol in- Britain, 
shackles on industrial development. Co! kin. 

10 had been monopolized by British ships, colonial "* 
products had been limited to English ports, colonial manu- 
res had been restricted or suppressed The fishing 
inland were impoverished by the Sugar 

1 ilk-iies stood idle. At the si 
vcs of Boston the merchantmen lay accumulating 
barnacles in place of profits forests and 

pshire hundreds of mast trees, marked with the 
broad arrow that reserved them f..r the royal navy, rotted 
wastefully away. Again and again conflicts broke out 
betwe ( >ods and the 

i \\ho held by "swamp lav farmers 

and 1 mia protested vigorously 

t the in and manorial obliga- 

tions. In the "back country" of the Carolina* the regu- 

106 Industrial History of the Un 

Ramsay, of mi-rulr. LCD matter- into their 

hands and declared the county of Mecklenburg in- 

Carolina. dependent of Great Britain. The grievances of the 
VI. colonists were not theoretical, l.u il and urgent. 

One fourth of the signer i.t" the 1 )ei laration <! Independ- 
ence were merchants or shipmasters. Julm Hancock, 
the first delegate to affix 1. 'ire to that momentous 

document, was known as the prince of smugglers, and was 
even then contesting suits in the admiralty courts that 
involved 100,000 in penalites. 

Industrial Consequences 

In the seven years' conflict that followed on the asser- 
tion of independence, the chances of success seemed about 
equally divided. England was handicapped by di>taiue 
from the scene of war. Soldiers, arms, and equipment 
must be transported across three thousand miles of stormy 
sea. The mother country was, moreover, heavily burdened 
by an unprecedented national debt. Her re- 
the way of taxes and customs revenue were, ho 
assured, for she had a standing army in thorough training 
and the largest and best equipped navy afloat. The 
seceding colonies had no treasury and no navy. 
lighting force was made up of militia companies fur- 
nished in uncertain levies by thirteen distinct state 
ernments. The troops knew little of army discipline and 
were seldom adequately provisioned; but the Americans 
were good marksmen, and they excelled the British in 
physical endurance and in the self-reliance developed by 
the vicissitudes of pioneer life. They had the 
advantage of fighting over well-known country and under 
familiar conditions, an advantage fully offset, to be sure, 
by the material losses necessarily Mi-tained in the country 
that must submit to the ravages of war. 

Callender, The most serious weakness of the seceding colonies 

i6-i79. their lack of union. The only central government 

the Continental Congress, a deliberative body with no 

/// of thf . :JH 107 

constitutional authority to lay taxes or to levy troop*. 

Collar- minht rr.|u:Mti..n mm an-1 -upplir*. !>ut h.ul i;.t 

pow rcc compliance. Each state sent its militia 

:tu iu-1.1 own boundaries were invaded, but 

was loath t<> furni>h tr.^.p- fur a distant campaign. The 

taxes 1 >tute legislatures were expended by 

the same auth <-re slow to make over any 

eir scanty revenues to the general treasury. The 

ultimate success of tin- colonists was due to political 

ugland and tin- Imu h alliance, rather than 

he strcni' .vn defense, 

National Bankruptcy. The long controversy had bred Bob* 

ins a hearty abh< Phe 

people who had repudiated the air : Parliament it 

wouM not rratlily n>|Mml t ies of the state legis- ( ; ; "'. i 

laturcs. Both state and lal governments wen 

obliged, therefore, to resort to the issue of bills of credit 
in <>r expenses of t ims. 

.isy nu-thod of meeting financial obligations had been Cdkodcr. 

eyes of business men by previous ex- I * ~ I 9S- 

ues and by the commercial advantages 

Mass. the resumption of specie 

rum >^ f the |>eople, h<. .ere con- 

need be i this fiat 

ising pout r h was cheap and con- 

. whereas the un- 

u abandoning the country. 

already issued paper money before 

uthreak ..i ! : ties. When Congress aayiimH 

respon-il'ilit> for the general defense, the New York lei 1 :he issue of 

learly inijx>- raise any 

sum aiK Do you think," argued one of Wcber. 

the delegate- in the Continental Congress, " that I will j 

y om>ti tuems with laxiN when we can 
to our printer and get a wagon-load of money, one 

In June. 1775, onc we ck a ^ lcr lnc appointment of the 

IO8 Industrial Hi*. 

Money and 

ch. ii. 





of the 


commander in-chief of tin- ('ont'nental army, Con: 
authori/cd the issue of $2,000,000 in bills of en dit . These 
notes entitled the bearer to r- given numb 

Spanish milled dollars at a time and place not sped lied. 
The responsibility for redeeming the not- 
among the several colonies in proportion to population, 
and each colony was to meet it- respective obligation in 
four annual payments dating from November 30, 1779. 
Another $1,000,000 was issued in July and $3,000,000 more 
before the end of the year. Early in 1770, when 
came that the English government was to send over ( 
mercenaries, still greater appropriations were called for, 
and Congress had ordered the issue of $14,000,000 before 
the Declaration of Independence was signed. The bills, 
imperfectly guaranteed and bearing no interest, were less 
acceptable to government creditors than specie, and 
Congress, well aware that further issues would we. 
public confidence in the redeemability of the notes, cast 
about for other means of meeting military expenses. 

In October, 1776, a loan was authorized. Bonds were 
issued to the amount of $5,000,000, bearing interest at the 
rate of four per cent. They did not find a ready sale. The 
rate of interest was too low and the credit of the govern- 
ment too uncertain to render this an attractive invest- 
ment. Later bond issues bore six per cent interest, but 
capitalists were loath to risk their money on so dubi<>u> 
a venture. Benjamin Franklin succeeded in borrowing 
$6,000,000 from France, and John Jay undertook to secure 
aid from the Spanish government ; but less than $35,000,- 
ooo was derived from loans at home and abroad. In 
November, 1776, Congress had resort to the then entirely 
honorable expedient of raising money by a government 
lottery. One hundred thousand tickets were printed and 
d on sale, and the sanguine authors of this scheme 
hoped to secure $1,500,000 in specie; but the prize-, 
treasury certificates payable in five years with inten 
four per cent, were not sufficiently alluring to delude many 
into taking lots. In December of this same year Con- 

//.' .<>!( -; 

gress requested the state legislatures, with whom the 

taxing power then rested, to raise the much needed revenue 

r several constituencies ; but the state authorities 

own expenses to meet, and had reason to dread 

v an atlci -. y taxes. No Sibbc. 

n $6,000,000 was ever derived from the state 
requisitions. Congress then recommended the state- 
to confiscate the property of Hriti-h s >m xn 
ers to the needs of the k. and to authorize 

thi payment of debts due British merchants into their 
own treasuries and in paper money. Some $16,000,000 ch 
was secured in this unworthy fashion. 

In October, 1778, when $63,000,000 in bills of credit 
had been issued and one dollar in specie was wort ' 
paper, Congress, finding this a costly method of provi> 
ing the army, urged the several states to furnish supplies 
in kind. Virginia was requested i 
thousand barrels of Indian corn, and the Northern states 
our, Ixref, rum, and hay. The cost of transporting 
these stores was often great, since the army might be dis- 
tant from the source o: and the device was soon 
abandoned. The state governments did, however, au- 
-ioners to seize food, fuel, and cloth- 
ing wherever needed, giving certificates of indebtedness 
change. This most i: and unequal form of 
requisition was only justified b\ -i-mities to which 
the army had been reduced in the previous winter at 
Valley Forge. It was a hand-to-mouth policy, and placed 
the American authorities in unfortunate comparison with 
the 1> mmissariat, where supplies were purchased 
KX! gold and silver c 

;>edients proving inadequate, Congress was 
finally forced to fall back on the emission of bills of credit. 
In the first eight months of 1779, $100,000,000 was issued, 
and i i sing power of the paper dollar declined from 

\th to one twentieth of specie toward the close 
of that year. In September Congress, aghast at the 
prospect of rapid depreciation, resolved to limit the total 

IIO /ntius trial Hi*. tk* I'nif, 

Papers of 
John Jay, 
I, 218-236. 




Hi-t. Am. 

issue to $200,000,000, and addressed a circular lett 
the Anu-r <le Mating the guarantee for the ultimate 

redemption of the notes. John Jay argued that the fulfill- 
ment of this obligation wa> pledged on the faith of th 
federated states, e. i* h had aumed its due port ion 

of the debt. The resources of the country were limi; 
population was increasing with extraordinary rapidity. 
the tax-paying capacity of t! would he amply 

sufficient to meet the payments before they fell di.< 
though the war debt should amount to $300,000,000, tin- 
quota falling upon the individual citi/.cn would be >light. 
It was inconceivable that an obligation a^umcd under 
circumstances so solemn and compelling should ever be 
repudiated. " A bankrupt. faithle>s republic would be a 
novelty in the political world. . . . The pride of Amer- 
ica revolts from the idea; her eiti/ens know for what 
purposes these emissions were made, and have repeatedly 
plighted their faith for the redemption of them ; they are 
to be found in every man's possession, and every man is 
interested in their being redeemed." Mlojuent and for. 
as was the appeal, it could not stay the decline in value 
of the currency. Before the end of the year a paper dollar 
was worth but two or three cents in specie, and ' 
had been obliged to issue notes up to the $200,000,000 
limit. No further issues were authori 

The forty several emissions of Continental curn 
amounted to $241,552,780, but since notes were occasionally 
cancelled, probably no more than $200,000,000 were in circu- 
lation at any one time. In this respect, therefore, Con 
to its resolution, but not so with the pledge to red 
The notes were never taken up at their face value. I 
November, 1780, when the bills were exchanging for specie 
at one hundred to one, Congn nended the states 

to recall them in exchange for bills of new tenor at th< 
of forty to one, and some $119,400,000 v* . anceled. 

In 1790, $6,000,000 more v, n at the United States 

Treasury in payment on government bonds at the rate 
of one hundred to one. The remaining $75,000,000 

.-l./V.'.'f i/ ////- RcislttttO* \ I I 

lost or destroyed as worthless paper. The depreciation of 

d currency was accelerated by state Issues 

ie amount of $209,524,000. These bills circulated 

as freely as the congressional notes, and brought the 

;> to $450,000,000, a grand total 

n excess of the business needs of the country. 

purchasing power had been due almost as 

to excessive issue as to the lack of confidence in the 

ultimate redemption of the notes. 

meeting the military emergency by credit Pfttia. 
money was eqt to a heavy and unequally distrib- 

art of which was borne by the im- 
mediate ere-: the government. The obligations 
represented in hills of credit, loans, and certificates of 
tedness amounted to $650,000,000, fully one third 
hich was repudia -pccic had been available, < in 
the cost of the war might have been met by an expci 

of $135,693,000. 
It would be difficult to prove that the central govern- McLau 

as the:. could have met tin- financial | 

emerp -' way. The debates of the period constit 

show a full recognition of the dangers of the road on which c " h IV 
the government had entered. The limit of $200,000,000 
was <: -et for the emission of Continental currency 

point that m'-ht not be passed in safety. Congress 
repeatedly protested against further state issues and be- 
sought the state assemblies to withdraw their bills from 

The state authorities were in 

equally serious straits and quite as unable to get back to 
a specie basis. Desperate efforts were made to sustain 

iin Congress solemnly 

resolved t! .y person who shall hereafter be so lost 

to all virtue and regard for his country as to refu-e the bills 

id discourage the y or circulation, 

>hall he (irrmni. ; : li>hcd, and treated as an enemy of 

!e and intercourse 
loyal adherent of the Revo- 
he bills at j .a.. In vain the 

112 Industrial . cf the T///W > 





d the hills legal tender in payment of all 
debts, public and private, and imposed lu-a\y penalties 
on persons rcfu-ing t< them; iiu-n preferred 

..H their property outright I .ng \\ort hle>> hills 

in exchange. In vain did price < Ofl under 

to check the rise of prices by fixing on a maximum limit for 
wages of labor, boat and carriage fans, inn charges, j 
of manufactures, farm produce, and imports; the scale 

to be advanced, from year to year to keep pace with 
the decline in the value of money, until the rates of 1780 














twenty times the prices prevailing in 1774. Even so 
it was impossible to enforce the legal tariff. Farmers 
would not bring their produce to market nor would mer- 
chants import goods to be sold for depreciated paper. 
Finally men abandoned the use of money altogether and 
had resort to barter. When, in the last years of the war, 
the specie brought in by the Engli.-h army and the French 
fleet came into general circulation, the Continental cur- 
rency disappeared and prices dropped to the former level, 
* cordance with an economic law stronger than any 
;tory enactment. 

The depreciation of the currency had a demoralizing 
l Bk I'' t enfcct on business relations. Debtors were enabled to 
\\ I. meet their obligations in legal tender worth but a fraction 

Industrial A >/rv/y of t/it Revolution 1 1 3 

of the value received Trustees defrauded their charges 

\ \rr l! 'tanCCS in pa. ectllators Writings 

trafficked in money of varying values, clearing profits 

itions from time to time and from place to s ,, 
place, and thus made fortunes out of the national disgrace. 
..ury advance in prices was regarded as suffi- 

the intimidation of merchants and n 
re of goods. "Specula- 

restalling," wrote Washington, " afford too Writing 
many melancholy proofs of the decay < -i \ .ul .1 . 

\\ J 

ing, I am convinced, but the depreciation of our 
aided by stock-jobbing and party dis- 
sensions, has fed the hopes of the en. 
Commercial Gains and Losses. With the achieve- 
: dependence, American trade was set free from 
the restraints imposed by England's colonial pol 
i ' nse benefits were anticipate his emancipat 

" Our com in -tc John Jay, " was then confined to Pubfc 

Great Britain. We were obliged to carry our commodities J^J^J <* 

er market and, consequently, sell them at her price ; i. ajo . 
we were compelled to purchase foreign commodities at 
her stores and on her terms and were forbidden to establish 
manufactures incompatible with her view of gain. 
In future the whole world will be open to us, and we shall 
be at liberty to purchase from those who will sell on the 
best terms and to sell to those who will give us the best 
prices." These hopes were not imm< realized. McUuchBa, 

rse policy ha ed merchants and Ch * v> 

nantial embarrassment. Parliarm 
prohibition of American trade, first with foreign countries 
hen with the British dominions, had been rigorously 
ved by an effective navy, and commercial ventures 
were abandoned because the risks were greater than the 
ofit. Many merchants took out letters of 
marque and reprisal and armed their vessels. Three or 
hundred privateers rendered valiant service through- 
out the war, defending our coasts and attacking merchant- 
men and mm ( '< tlying the Union Jack on the high : 

114 I Hi/list rial Hi 




of U.S. 

" l92 ' 

Ch. ill. 



2o8 ~"- 

Some six hundred pri/.cs fell to their share, and the ],ri/e 
money went far toward offset ting the losses of the merchant 

The major part of our transatlantic trade had been with 

Great Britain and her dependent it-. Independence 
us outside of the Navigation Act and deprived u> of tin* 
Commercial advantaj/e- hitherto accorded Anieriran v 
in British ports, and this commr < rious 

check. The younger Pitt, the cunstant friend of An, < 
proposed (1783) that the < ;al relation- bet v 

Great Britain and the United States be bed <m the 

princij)le of reciprocal benefit. American >hips wen to 
foe admitted on the same terms as those of any independent 
nation, and the goods brought in should 1- only 

to such duties as were imposed on goods from the British 
colonies. This wise and liberal policy was set aside be- 
cause protested by the English shipping interest. It was 
urged that American vessels, built more cheaply and 
manned more easily than were their British competi: 
would soon secure the whole Atlantic trade, and that the 
United States was likely to become a more dangerous 
rival than Holland had been. British subjects were for- 
bidden to purchase American-built ships. Not only 
American vessels classed as foreign under the Navigation 
Act, but the seceded territory was treated as thirteen 
distinct states, and an American vessel was excluded unless 
her cargo consisted of the products of the particular state 
where her owners resided. In 1783 an Order in Council 
denied American vessels access to the ports of the British 
West Indies under any conditions, and forbade the im- 
portation of fish, beef, and pork from the United Si 

when carried in English ships. More than one third 
the vessels clearing from Boston and New York in the 
decade before the Revolution had sailed for these ports, 
and under the new regulations American merchants for- 
feited a trade worth S^, 500,000 a fBttT. To the planters 
of Jamaica and the Bahamas this arbitrary prohibition 

nothing le>s th n disaster. Fifteen thousand slaves 
died of starvation in the next four years. 

hemp, dwindled because of the withdrawal of the bounties 

In place of 
orts actually 

thr e\|H.rtati..n .-I t hi -r artiilev I hr 

)>uilil< best market, and the whalers were 

'i their Hr jK-titors. 

duties of the Corn Law were 

imposed u|Mn nets. Our trade with 

Indies, with KurujK- 
e so far as ships were concerned, was I 
perecl nhitions and us on the goods that 


Congress of the Confedera ipted to nego- Pkkfa. 

tiate a < .11 that should J['^ h ' \ 

e more advantage- thr-<- overture^ 

', ith the 

trade regulations enacted I ^overnmmt. and 

sh statesmen opci i the ability of Congress 

e any commercial agreement UJH.H thirteen un- 
ruly rSS Was 1 CaiicmlCT, 
successful in i itrn>t- 

Drship in both banks 
of th. M ~ipl>> and. l>y omstxiueiu-e. the i\ 

ide along that it :npt 

.11 vessels equal ri: 

tested the surrender >t' tlu-lr only means of reaching a 
't. and plotted seces- N 'h other 

line to little result. Said Wa-t 

rteen to who will 

treat with u- on the- 

il legislation wa- rvitable Hifl. 

the states. Massachusetts J^l*^^ 
\cw Jen* leclared for free trade in the p^fey, 

intei- t continued to levy an CX- 4Q> 

l"-rt ibaccoand an imjMrt duty on liquors as the 

1 16 Industrial . tto ( 'ni; 

Sut. View 

Ch II. 


Tariff Con- 


easiest means of securing a revenue. Pennsylvania, Rhode 
I>land, and New York, and eventually Ma>sirhiiM-tK 
laid 1 txes on foreign luxuries, such as \\ 

coffee, sugar, and coaches, in tin interest of revenue. 
imposed duties on certain manufacture:* in order to pmtri \ 
domestic industries again>t Kngli>h competition. 
York and Pennsylvania discriminated again>t foi 
(especially Briti>h) traders by doubling the duties on gi 
imported in British vessel- BvCO 

e.g. in tobacco, was subjected to imposts. The Atlantic 
coast was thu> divided into thirteen distinct dis- 

tricts, each pursuing an independent policy, and the 
authorities not infre(juently came into conflict a- to the 
limits of their respective jurisdiction \ inia and 
Maryland were at loggerheads over the navigation of the 
Potomac, while Pennsylvania and Delaware disputed 
control of the Delaware River. Soon it became evident 
that Congress could not bring Spain and (ireat Britain 
to terms nor negotiate other commercial treaties without 

to make and enforce uniform regulation-. 
Development of Manufactures. Independence put an 
end to the restrictions imposed by Parliament on American 
manufactures. Woolen cloth and beaver hats could now 
be sent to any market at home or abroad, and slitting mills, 
foundries, and steel furnaces might be erected without let 
or hindrance. The nonimportation resolutions and the 
embargo combined to stop the inflow of foreign goods, 
and the special demands created by the war ; aor- 

dinary stimulus to certain industries. Cannon, mu 
anchors, etc., no longer to be had from England, 
wrought in the foundries of East Bridgewater, Canton, 
Springfield, and Easton, Massachusetts. Considerable 
steel was made into muskets at Lancaster, Pennsylvania, 
and at Trenton, New Jersey. The Sterling works cast 
:uns for the battleship Constitition and the links of 
the iron chain that was stretched < Hudson at 

West Point as a barrier against the Briti-h licet. At the 
Principio works in Maryland the English owners having 

//: :i* 117 

lost control, cannon balls were ca m use of 

The fact that the Washington family 
h interest in the plant may have determined 
this ; service. 

Salt was another necessity that had now to be produced 

upply Ir ugal and the West Indies 

being cut off by the -* along the New 

ed iat el v doubled their capacity. Tanks 

ic were set up at New Bedford and on lll 

; Cape Cod The salt wells of Onondaga 

-n known to explorers and pioneers, 

need no slight advantage 
decade during which domestic manufactures *** 

an mark | B*n*fl. 

ny as well as for ordinary wear was made up at 
my a mil to the war dad in a 

...1 >h>rn from hi - own sheep, spun and woven 
ami fashinnrd l>y the u is housel 

was stinuilatt-tl liy tin- \ y com mi; 

ml more 

raw material. (. had re- 

tlu- Board of all tin- wool 

p for the in- 

etTort increased the supply to Weedm. 
the |> -.ifd in the decade follow- !I - 7J-7i3. 

ilture, a icred premiums i 

:i Of 1*10 

was proposed fr tlu- nr-t thn- iron 

up in the oi the first 

.ill run l)V water jx.u. 3 i'..r tlu 

.-e on Trcmont Street, 
ol was opened where expert mis- 
tresses taught thi^ ireful and popular art. William 
r, boasted that they had " learned 

and women to spin ii 

1 1 8 In tii i I 'HI f i'ii 

busy weaving woolens, linen, duck, and sailcloth, and a 
bleaching yard, fulling mill, and d\ were operated 

on the same premises; but tin- occupation of Boston by 
British troops and the subsequent siege ruined \\\\> entt T- 
prisc. The Amcr : Manufactory. M-t upon tin- . 

\inth and Market Philadelphia, employed some 

five hundred people in making linen and woolen doth. 
Tin- yarn was supplied by women who spun in tin-it 
homes the llax and wool furnished them by tlie company. 
The busi: >u>pended with the British occupation; 

but another Philadelphia factory, established by Samuel 
Wetherill, successfully filled a large contract for army 
clothing woven and made up in the same- shop. Reading 
and Lancaster were also important manufacturing centers. 
In Xew Jersey there were forty-one fulling mills for fin- 
ishing the cloth woven in the farmhouses, but no fa< t 
The linen and woolen factory of Baltimore, opened in 
1776, was granted a subsidy by the state legislature, and 
several private enteqirises were soon established. Kvery- 
where north of the Chesapeake the output of linen and 
woolen cloth was sufficient for dome -tic needs. Farther 
south the native cotton was the only available fiber, and 
Phillip* spinning wheels and looms v rce. Nevcrthek, 

II. 314-330. t ne patriotic managed to clothe themselves and their slaves 
with homespun, and a considerable industry was developed. 
In 1786 Jefferson wrote to a friend : " The- four southern- 
most states make a great deal of cotton. Their poor are 
almost entirely clothed with it in Winter and Summer . . . 
the dress of the women is almost entirely of cotton manu- 
factured by themselves, except the richer class, and even 
many of these wear a good deal of home-spun cotton. It 
is as well manufactured as the calicoes of Europe." 

The Farmer's Opportunity. Certain agricultural in- 
terests suffered from the withdrawal of the Hriti>h bounties. 
The turpentine industry felt the effect of falling prices, and 
the indigo planters were ruined. Lumbermen discovered 
that full license to fell the fmol trce^ hardly compen 
for the failure of the British bountic-. These losses were 


lally made good by the opening of new markets in 
TC.IM in the domestic demand con- 


.in.l tobacco planters, the removal of all rot the 

: --I i lu -ir exports was an unquillfifd advantage. 

- agricultural future- sio. 
audition l,y the state legislatures 
.estigc of feudal land The agitation was -77. 

-.ii in \ :r-inia and was taken up 
tdcrs of the other Southern states. Wdd. 
Heniture no lonp 

and jM-rjH-tu.iti-d great estates, while entail and all other 
restr. he transfer of landed property ceased. The Randall, 

paym nts was no longer required, and the fee 

simpl. >ecamc absol ITie 

of thr ; ^ tn the un-rttktl 

iia and Man land terminated, and these estates, 

together with the rrown la. id*. la|- tC, New Sbephad. 

and Massachusetts sold their we>tern lanN in large 
to to speculators who resold at an advanced price to 
rs. So the fertile l.mlan. 1 the 

d of Lake Ontario and Lake Erie were settled, '"** 
prosperous little communities developed. 
The Antislavery Movement. - im|M>rtation of 

.in slaves had been regarded as a t< ^ 

that would cea-e when imni :id the natural growth 

of |Mi>ulatin should rentier '. ly of white labor Trade. 

sutVu in the Southern M v 

labor was evidently proiitaMe. it was keenly felt that the Amerien 
plant. in was m< -hesocialand } fl ^ 

jH.litii-al e\ils that mi-lit anru< ,64. 

Carolina. .d. and had ea< 

to re I>ortation of slaves by la\ J*^ 

-h as to be prohibitory. Any serious ws. w$. 
the slave trade was, however. <juite inconsi 
with Hriti>h ]>oluy, and adverse legislation was promptly 

pany was imj>orting 
annually ^3) from usand slaves 

I2O ///.. ///.v/,rr cf 




II, 29-30. 


on Slavery, 

to tlu- American colmiio. and it> stm kh<.ldcr> had 
social and political inlluciuv. Alter tlu- monopoU 
withdrawn. private merchant- urged tin- continual!- 
thi> highly profitable t. .17 17 Maryland laid a duty 

on imported slaves. Virginia had impo>cd a duty < 
in 1710, Imt the bill v. 

because of the check on importation. Similar hills p. 
tlu- House of Burgesso in 766, and ly to 

be disposed of by veto. South Carolina laid import duties 
ranging from 10 to 100 and proposed to devote the 
revenue collected to defraying tlu- expense of bringing 
in white servant-. In 1700 the legislaturr B law 

forbidding the importation of slaves into this colony; 
but the act was disallowed by the Privy Council, and the 
governor who had signed it was reprimanded. In 
the Virginia Assembly addressed a protest to tin 
" The importation of slaves into the colonies from tV 
of Africa hath long been considered as a trade of great in- 
humanity, and under its present encouragement, we have 
too much reason to fear will endanger the 
of your majesty's American dominions. . . . Deeply 
impressed with these sentiments, we most humbly In 
your majesty to remove all those restraints on your maj- 
esty's governors of this colony, which inhibit th 
ing to such laws as might check so very pernici- 

In the Northern colonies the economic as well as s< 
and political advantage was with free white labor, and 
but few slaves were held. The trade in slaves was, how- 
ever, a highly profitable one. Duties were levied at the 
ports both for revenue and to discourage importation, but 
the trade was left untrammeled by the provision that the 
duty should be remitted in full when the slave was re- 
exported. Boston and Newport and other Nev 
. ports became open -lave marts where slaves brought from 
the Gold Coast were held until a suitable market should 
be found. 

The struggle for independence wakened a keener ap- 

//: A <rfs of tkf . .v* 

preciation of human rights. Slavery had long been pro- Lock* 
tested (iigious grounds, 

and the protection ^ : he slave trade by Great 

-s resented as an ugly phase of her selfish colonial 

ia. in her ; > M rnportation resolutions of 
had recommended th ants import no slaves 

and purchase non -1 until the Townshend Acts 

should be repealed, and tin- nonimp 
1774 caJK ia and North 

Carolina against the further ii \\ of slaves. Mas- 

sachusetts (1771 a: < laware (1774) under- 

took t< ] !|*.rtatin. hut ti toed 

the royal governors. I hi- kl. :. M.n.d I ricnds 
mg a la\\ a of 

negroes; but a permissive clause allowed vessels belong- 

.n >lavi-x that "uld not be sold 

in tl. hulu>. provided the master gave bon-i 

depor ithin the year. Connect 

tc prohibition of the slave trade 
On Octobt 74, the ( 

all the colonies, resolved: 

-c any slave imported 

after \\hii-h time 

i will neither 

be coiumu-d in it ourselves nor will we hire our vessels 
nors< > are 

: in it." arkal.le defl ailed OUt 

in (Iror-u 'Ii. 

put up a the 

agreement was delayed until the thr< reed 

the laggard COiony I line. On April .;. 1776, 

txi into any of t he 
olonies " ; but thi> prohibition marks the 1. 

In i il draft independence WriUapof 

unan na 1 

y in the persons of a distant people 

Industrial History of tlie United States 

\\lio never offended him. captivating & carrying thrm 
into slavery in another hemisphere, or t< incur nii.scral It- 
death in their transportation thither. . . . Determined 
to keep open a market where MI.X -Imuld be bought & 
sold, he has prostituted his negative for >up 
legislative attempt to prohibit or to rot rain this execrable 
commerce." Spite of the great inilueiice ol" JelTerson 

and the efforts of the Virginia and Massachusetts delegates, 
this denunciation of the- slave trade was struck out of the 
ngsof final form, "in complaisance to South Carolina and 
tr "' n> Georgia, who had never attempted to re-train the impor- 
tation of slaves, and who, on the contrary, still wished to 
continue it. Our northern brethren also, 1 believe, 
felt a little tender under those censures; for though their 
people had very few slaves themselves, yet they had been 
pretty considerable carriers of them to <>tli 

The basis for this accusation of complicity was soon 
removed. In the years immediately following on the 
adoption of the Federal Constitution, the Northern 
without exception barred the slave trader^ from their 
ports. Massachusetts, in 1780, abolished slavery within 
her jurisdiction. Before the close of the eighteenth cen- 
tury, gradual emancipation had been ordained by law in 
all the New Kngland states, as well as in New York and 
Pennsylvania. The emancipation movement found ex- 
pression in the generous offer made by most of the Northern 
states of full and complete freedom to any negro or in- 
dentured servant who would enlist for service in the Con- 
tinental army, while Congress undertook, at Washington's 
urgent request, to recoup the masters of enli-ted >ervants 
by grants from the public domain. One of the important 
ts of the Revolutionary War was to convert a con- 
siderable number of emancipated slaves and indentured 
servants into free laborers and farmers. 

l>i of tltt A'civ//*//** 

The Conquest of the Ohio Valley 

The struggle for independence had two distinct phases, 
The first and best known, tlu revolt against British rule 
was the work of the A *st colonies; the second 

and hardly yet appreciated, tt ^ of the Western wiav. 

was the achievement of the pioneers who pushed WIH 
acros untains and took possessi: 

drained by the streams that he Mississippi. ,, 

r and south f the Tennessee, two Dncfi'ptioo 
great Indian confederacies held sway juois and the "f *'.* 

:i these host dona" lay a dc- 

batab .m tribe dared claim. A 

M with game, it was 
hunting parties seeking deer, dk. 

or buttal" war band- in pur \\ prey; 

hut the aborigines planted nothing more substantial t 
rr camps within the and bloody 

ry was the path nice 


tioii. It ua- il.iiim-i! .ia in virtue 'sea 

to Sea " grant ma* James I, 

l>ut thr pajx-r titlr wnuld 1 lor little hal 

thr lanil IKCII |KOple<l that the Srtnplc. 

most ik- mountain passes opemtl from Yir. IV - 

gave 1 
she became the mother -t comm- 

i the Great Va! <n. 

ays led aero- t-ghanies: up th R^d* *** 

: the pass at. Ck.Vl, \ in 

ioghen \ t 1 so down to I 

mil thr: .oner t" the Jjm Fiat. 

Thi- is speedy but haz- Lctl 

ardous. for the river was treacherous e.v or. 10$. 

and : liaii^ lir 'he forests of the northern 10^-110. 

shore. The (> nawha cut a second pass 

h. the i ig imprart 'cable, a road was 

:>uilt into the hea itikky. Hut m>-t ,,f the 


:'':c I'nitcJ S 




XII ; II Ch. 


men \vh. crord ihr mountains in tin- Revolutionary 
period chose tin- path OVW Cumberland Gap. Tlii> route 
was comparatively free from Indians and prac ticable at all 
season-. The Tennessee River, navigable for boats of 
light draft, from its source in Holston Valley till it c -mptu > 
into the Ohio, made another highroad into the wilderness; 
but this r ;ar more difficult than the Ohio, and its 

hanks were infested by Indian freebooters, tin (1; 
maugas. Nevertheless this \va> the usual route into tin- 
southwest territory. 

The Backwoods Settlements. Adventurous hun; 
French and Spanish Creel .-11 as Americans, had 

penetrated the wilderness beyond the mountains in pur- 
suit of game and pelts. Indefatigable traders from 
Philadelphia and New York floated their merchandise 
down the rivers and followed the buffalo trails far into the 
interior, carrying on stout pack horses the rum, firearms, 
and trinkets that were to be exchanged at fabulous profit 
for skins and furs. Surveyors, sent out by state auth< 
or by land speculators, ran their boundary lines through 
the primeval forest with infinite toil and no little danger. 
but since each party worked quite independently, their 
surveys resulted, in an inextricable tangle of conflicting 
claims. None of these, however, were- settlers; they but 
prepared the way for the real westward movement. The 
coming of the pioneer farmers, the men who proposed 
taking up land and building homes, coincided with t he- 
epoch of the Revolution. By 1770 tidewater Virginia 
was full to overflowing, and the " back country " of the 
Blue Ridge and the Shenandoah was fully occupied. 
Even the mountain valleys of the Yadkin, the Wai 
the French Broad, and the Holston, were claimed by 
colonies of sturdy pioneers. Before the Declaration of 
Independence the oncoming tide of home seeker- had 
reached the crest of the Alleghani 

Tin- invading wave gathered in its tide men of diverse 
races and condition-. Scotch-Irish and Germans moved 
south along the (ireat Valley from Pennsylvania or up the 

//; :ht AV:. 12$ 

i ( luirlcftton. 

the Delaware, Huguenots from the port 
.vcd the 
he need of dbowroom and had pluck and muscl< 

s of the i: in Ke*- 

rcr sons of planters seeking land, redemp- 

r* who had served tl - and others escaped 

laws i v|xr, sought a chance to better their fortunes 

in the new world beyond the mountains. The adventure 
was as great as that made by the first settlers uth 

Jamestown. The jourm y across the Appalachians 
was quite as serious an obstacle as the transatlantic voyage, 
the costs were no less, and the dangers far greater. The 
men and women who had the hardihood to make this * 

Indian-haunted trails, 

were steeled for the multiform a< 1 . e backwoods. 

The first permanent settlement in Kentucky was fi- 
nanced by the Transylvania Company, a business assotia- 
ti.'i organized by Richard Henderson, a surveyor from 


and :i-e." He secured title to the region Thw*it, 

bctWf U- and the Cumin aty wiii 

with the ( lu rokees and immediately sent a j r 'X ch. cc 

lance of Daniel Boor 

to dear a t the II * n to the 

tmild there a palisaded fort. On the 
20th of April. nderson arrived in Boonesborough 

he bulk of the colonists. There he opened a land 
office and proceeded to grant farms in tracts of four hun- 
dred acres and upwards HrM.!iT-..n anticipated a revenue 
from quitrents due on the land and from the trade that 
i develop with the settlements, but he was disap- 
unruly pioneers refused to pay rent, and 
i protested his Indian title, so the 
Company came to grief; but the grants 
made to actual settlers we: confirmed in fee 

>le U the Icgisla; Virginia. 

126 Itnlust) ''ic I 'nit fil States 

I. Cli XI 

II. rh I V; 

III. ch. II, 

VII : IV. 



Ch. VIII. 

Three ether M-ttlem< founded in Kentucky in 

1775, Harrodstown. Boiling Spring, and St. A>aph- or 
Loga (XL In 1770 John Robert -<m. the leading 

spirit of tlu- \Vatauga colony, led ;i migration along the 
Cumberland River t< the BluflV and there founded \ 
boro. Every such settlement (entered in a pal; 
village where the fain hou>ed during the Indian 

raids. Each settler felled the trees, planted corn, and built 
a log hut in the land aigne<l him ; hut the cabins in t In- 
isolated clearings could not he defended again>l serious 


Indian Wars. Kver since the acquisition of this 
territory in 1763, it had been the policy of the Hriti-h 
rnment to withhold the lands from settlement in the 
interest of the fur trade. Xo\v that the settler- 
rebels, a systematic effort was made to drive them hack 
to th .ird. Cameron, the representation of King 

George on the Carolina frontier, incited the- Cher 
to take the warpath aga : n-t the invaders, and throughout 
1776 the border settlements were ravaged by tire and 
tomahawk. The VVatauga men, aided by militia from 
Virginia, Xorth and South Carolina, and Georgia, finally 
succeeded in forcing the tribes to make peace and to yield 
a considerable portion of their lands to the Ameri 
Thenceforth the pack trains of the pioneers traveled the 
Wilderness Road free from the fear of molestation. 

In Kentucky the contest against the Indians and their 
British allies proved an even more serious affair, for Hamil- 
ton, the British commander at Detroit, supplied the- \m- 
quois with arms and bribed them to raid the Ann 
outposts. No frontier settlement, from Fort Pitt and Fort 
Henry on the Ohio to the palisaded vill Kentucky, 

was exempt from their cruel assaults. The ferocity of tin- 
savages was matched by the fury of the backwoodsmen, 
many of whom cherished an hereditary hatred of Kngland, 
most of whom had lo>t wife or child or friend through this 
latest development of Hritish policy. All the toil and 
suffering that had gone to the building of the frontier 


nents teemed likely to rml in ruin, when Colonel 
George Rogers Clark, the most adroit of Indian fighters, 

I to carry the v enemy's tout 

.i? secure*! funds and ammunition from Patrick 
'ovenior he issued a call for 

voliir .1 spare no men; l>ut 

nd here their op- 

to pay off old grudges, and the\ > Clark's 

i.ird at I -anies of picked men 

at floated down the Ohio to the mouth 

of the Tennessee, and there, dLseml 'hey marched 

i.! to th iskaskia and 

'.'abash. Tak< habitant ered 

were quite as well content to be 

.rress men " as king's men, since both were alien 

powers. The Indian chiefs, gathered at Cahokia, were 

the prowess of the " ln^ '-. and 

acy soon persuaded make peace 

Hamilton, then in winter quarters 

reparing an . > caught 

off his guard and forced to little garrison (1778). 

igress became the dominant fxjwer both north 

. and th . five years 1 

peace was mad' 11 the Briti>h territory 

between the Great Lakes and t das was ceded to 

the United States. 

Peace and Prosperity. The country once freed from Roosevelt, 
danger of Indian outrage, settlers crossed the mount 

>and people came out in 17X4 
ky alone. When the first Doited States cen>u iv 
was taken, fifteen years after the ; >f Booncsborough, 

there wen h i t es i n K e n t ucky 

and thirt\ .ere were 

probably in 1700 fur hundred thousand settlers on the 

into the Missis>ii 
th Carolina opened a land office in the Watauga 

red farms on easy terms 
head lily might t. mdrcd and forty 

128 Industrial . ,i 




in Ken- 
tucky, 42. 


acres on his own account, one hundred for hi- wife. 
one hundred for each i hild. The price was $10 per hun- 
dred acres; but since this might be paid in depreciated 
currency or set off against military service, the settlers 

no difficulty in ;ull title. South ' 

offered similar terms for her Cherokee lands in 1784. Vir- 
ginia (1779) offered the Kentucky pioneers four-hundred- 
tfl at the rate of $2.50 per hundred, on condition 
that a house should be built and corn planted within the 

. Every man who could prove a " cabin ri: 
had a preemption claim to one thousand acres moi 
a cost of $40 per hundred, (lark's men v nled 

in bounty lands north of the Ohio, three hum! 
each, while the arrears of pay due the soldiers of the ' 
tinental army were made good in the same inexpensive 

A contemporary writer ha.- lei't a careful statement of 
what such a pioneer might accomplish. " A log-In n 
very soon erected, and in consequence of the friendly dis- 
position which exists among the hospitable people, every 

hbor flew to the assistance of each other upon occa 

nergency. Sometimes they were built of round 
entirely, covered with rived ash shingles, and the inter- 
stices stopped with clay, or lime and sand, to keep out the 
weather. The next object was to open the land for culti- 
vation. There is very little under-wood in any part of 
this country, so that by cutting up the cane, and girdling 
the trees, you are sure of a crop of corn. The fertility 
of the soil amply repays the laborer for his toil; ; 
the large trees are not very numerous, and a large pro- 
portion of them the sugar maple, it is very likely from this 
imperfect cultivation that the ground will yield from 
fifty to sixty bushels of corn to the acre. The second crop 
will be more ample ; and as the shade is removed by cut t ing 
the timber av t part of our land will produce from 

seventy to one hundred bushels of corn from an 

Hnary fertility enables the farmer who has 
but a small capital to increase hi> wealth in a most rapid 

1 -' 

A< I I Al. o , 

VN 1> 

1 1.1 A 1 \ I-..-I M> \UOM1 

130 //. History of t lie Un 

manniT (I mean by wealth the comforts of lift-), lli^ cattle 
and hogs will find -uffu ,Ynt food in th. n.t only 

for tr. upon, hut to fatten them. Hi- horses 

want no provender the grcate-t part of tli- 

and wild clover; hut he m. ':iem with 

the second year, Hi> garden, with little attention. 

him all the culinat 

for hi- table; and the prolific iiu and 

poultry will furnish him t! :ring 

to injure his stock, with a plenty of animal food ; and in 
three or four year- attle and >hecp will \ 

sufficient to supply him with both beef and mutton; and 
he may continue his plan at the >ame time of i 
his stock of those u-efnl animals. Hy the fourth 
provided he is industrious, he may have his plantation 
in sufficient good order to build a better hoii-e. which he 

lo either of stone, brie'. i wooden buil- 

the principal articles of which will cost him little more 
than the labor of himself and domestics; and he may 
readily barter or sell some part of the superfluous pro- 
ductions of his farm, which it will by this time afford, and 
procure such things as he may stand in need of for the 
completion of his building. Apples, peaches, pear-. 
he ought to plant when he finds a soil or eligible situa- 
tion to plant them in, as that will not hinder, or in any 
degree divert, him from the object of his aggrandizement. 
I have taken no notice of the game he might kill, as it is 
more a sacrifice of time to an industrious man than any 

advantage." Once cleared and brought under culti- 
vation, the limestone soil yielded ama/.ing crop- of corn, 
hemp, and tobacco. The buffalo herd-, indi-pensable 
support of the backwoodsmen, di-appeared from Un- 
cultivated districts. Cattl- -.allured on the native 
grasses and increased both in weight and numbers, while 

horses brought from Virginia grew strong and licet 
beyond seaboard standar 

Manufactures and tr i with population and 

security. Shoes were substituted for moccasin.-, and linen 

and woolen doth i.-r luu \. \.\i\. all being made up at home, 

Tanneries wrrc set up IT the- tanning of hilr>, aii<i thr 

primitive hand mills wrrc superseded by gristmill* run \>y 

.iddlcrs, Wad hts, and 

carpenters earned good wage- growing towns. 

Su".ir wu^ munul.u \ urrl lr:i, t lu- ^.n> < >l thr i"fr- t ; f ,\< - 

* * 

Salt was evaporated from the saline springs or " licks " 
on the Kanawha in sufficient quantities to supply the 

ts by 1793* It sold at from $3 to $5 a bu 
l.ut this was less than the cost of transport: pack 

hone across the mountains. A retail store was opened 

;, and goods imported f mm rhikuit 
by way of the Ohio were \agon road or pack trail 

.; M-nU-nu-iit -e was as people o! 

vet littU- mi>n< ulation, and exchange was enV 

by barter: salt. }*ltrics, bear's grease, and com bearing * 
a fixed money value. \cs were paid in pixxi 

A compound unit, one half beef, pork, bear meat. 

eighth salt, and one eighth 
icy, was legal tender along the Cumberland 


Formative Legislation 

The Federal Constitution. -The necessity of establish- 
ing a central government with powers adequate to t In- 
raising of a revenue, the maintenance of a uniform and 
stable currency, the negotiation of treaties with f- 
nations, and the arbitration of inter-late . had 

been rendered abundantly evident by the ditTiculties of 
the war just closed and by four >eriencc of anarchy 

under the Confederation. The thirteen independent 
forced to set up a central authority endowed 
with all the powers that had been denied to the British 
Parliament. The Federal Congress, though fully repre- 
sentative of the interests of the people, was regarded with 

>icion by the state governments, and power to legislate 
for business interests, even of a general nature, was grudg- 
ingly conceded. Congress was accorded power " to lay 
and collect taxes, duties, imposts and excises " in order 
"to pay the debts and provide for the common d< 
and general welfare of the Unite- " to regulate 

commerce with foreign nations and among tl 

<-s," "to coin money and regulate the value tin 
to maintain copyrights and patents, to establish post- 
offices and post roads. As an offset to commercial re- 
strictions likely to be imposed by the Federal Con 
the Southern representatives secured a clause forbidding 
the levy of duties on 

The states, on their part, surrendered the right to coin 
money, emit bills of credit, or make anything but gold 
and _M! tender in payment of debt, and agreed to 


A 1 .' '.'iff 133 

ities or duties on imports without 
consent : Congress. The- adireet taxes 

has been relegated in practi tales go-. 

vas permit tr<{ i,, enter into any agree- 
other state or with a foreign 
negotiate treaties was 
vested in the President and Srn.i- 


im|*>rtati<>n of slave- 
was mad. The oj> 
pom -,! tin slave trade should be Dobofa, 

1ml thr deva>tati>ns ijj^**** 

of war had consid <<! the lal.r force of the ch 

et, and the delegates from South Car* 
1 Georgia asserted that - 

:nent if it meant 

pnunisi-. Congress was to impose nc 11.103-174. 

.\in the rite states an interval 

<-k their plantat: 
i states gave ! th. ty of 

the immedia- 
of all i slaves at their \vn ; 

orth was 27 4 -'joo, 
the oi < the amendn 


the ad.plin f any : ri navigai 

Legislation in Behalf of Shipping. The merchants of Bates, 
rapoits, finding r ired 1>\ the Hr!: Marine 

manding comj>ensatin pr 

ral Con- 
gress was drawn up 1>\ the >hipping interests of Baltin 

d vantages looked for from the 
>ing and 

ill of the l*i \ m state 

: Iar in t h PPi, 

^rights i- 

134 Industrial History of the United States 

Annals of 


Annals of 
I. 258, 259. 

t> tin- sum* effect, begging that Congress would relieve tin 
disasters that had fallen on shipyards throughout tin- 
United States in consequence of the decline in that bram h 
of business. A Maachusetts representative, Mr. Good- 
hue, proposed that dutie> to the amount of sixty GOltfl per 
ton be levied on all foreign vessels coming into our ha: 
! to the restrictions imposed on American \ 
in British and Continental ports. This tonnage dut\ 
protested by Tucker of South Carolina, 
it is well known, have more tonnage than i> Mitiu ient to 
carry all their small productions to a market; of o> 
a duty on foreign ships will not affect them. Other St 
which have considerable quantities of more bulky articles 
to export, and require a greater number of ships, having 
few or none of their own, must consequently be subj. 
to the whole of the additional duty ; f< >r, whet her t he \ < 
be foreign or American, the freight will be the >ame. Much 
of the produce of South Carolina is carried off by ; 
and in American shipping a considerable quantity i 
ported. The duty will be paid equally, in either case, by 
the shipper, for the freight of American vessels will be 
raised to an equality with the other ; and of all this money 
so paid, there comes into the Treasury that part only 
collected from foreigners; the rest, as I said before, goes 
as bounty to benefit the owners of American ships." 

Of the 437,641 tons of shipping employed in the com- 
merce of the United States, about one third was owned 
by foreigners. The proportion varied from 10 per 
foreign tonnage in the ports of Massachusetts to 67 p-r 
cent in those of Georgia. It was evident that the com- 
mercial states would gain far more by discriminating duties 
than an agricultural state such as Virginia, where few 
seagoing vessels were built or owned and where 52 per cent 
of the exports was carried by foreigners. The result of 
the debate was the Navigation Act of 1789, by which 
preference was given in the ports of the Un i t c< : ves- 

sels either built or owned by American citizens. Such shij >s 
were to pay tonnage duties at the rate of six cents per ton 

Ab//<'M<f/ /A ^inntngs 135 

Id capacity; ve*- ite> hut 

reigners must pay thirty 
vesidi built and owned abroa 
All vessels engaged in the coastwise trade and carrying 

in th. <*, were to pa .ic duly 


this legislation was * 
.shipmasters the monop ic coast u 

: has persistt foreign 

-, vessels owned and )>uilt in ; .ites 

.!'! an ad v.i .vere 

ahk- ' 

lit \\a^ 



' in the i -ease in the num- \ c . 

her of vessels : 

.ildin- ir and ocean t- s mi. 

.\ii;e<l in trans;itl.: 

>ri\ileges secured hipmasti 

123,8 081,019 

n trade osed 

: these year- Annabof 

!i India ft] **" 

jKxrial d 1789 

K!S imjv 
i and Ch-'na in f- 

|x>und ' 

136 Industry/ His: 

CfriM *MT MOO ix (kaL.Mnu 

.. , . 



can vessels < I hina; when brought in an 

in a British or Kuropean |> :uty 

paid varied from eight to twenty-six cents; but if the 

who! y was made in foreign bottoms, the charge 

was fr Thus the East India 

.my's monopoly was effectually broken so far as 

rica was concerned. The "China utter. 
trade " centered in Boston, Salem, and Providence. At uidum. 
these ports Yankee dippers took on lumber, naval stores, 
salt fish, rum, and gia^ made their way round the 

Cape of Good Hope,, exchanging the cargo en rouU for 
t Me precious metals, and other goods suited 
to the Oriental tra<: ultimate dcstinat 

these goods were bartered for tea, spices, coffee, silks, 
nankeen, India muslins, saltpeter, etc., articles of great 
value in proportion to bulk. On ret urnin. his cargo 

be sold at a rcshipped for some European 

Trade with ir toward compensat- 

ing th \"cw England for the exclusion of 

American vessels from the ports of the British West 

wnressional legislation in behalf of commerce was Abbot, 
mited to di>- Against foreign shipping. ck * x - 

i x> was passed rgu- 

i of American Seamen. I UU-r this law a writtm 
> age for \- was un- 

.i-n and tin- rate of wages to be paid, must be signed 
by master and man and recorded by a United States 
official. Seamen deserting the ship forfeited their wages 
and might be reclaimed and forced to servo t<> the end of 
>yage. The captain, on the other hand, was required 
to fur ihle living accommodations, and was liable 

to penalty if he abandoned an American sailor in a foreign 
jM>rt. An act of 1802 provided for the erection of light- 
oast, especially on Long Island Sen 
money l ided by a special tax of fifty cents 

vessels. In 1807 an appropriation of 
$50,000 was made for the coast survey. 

138 Indus triii/ History of the I 


II, 185-192. 



Treaties and 

macy, 12-31. 

Abolition of 

On War, 
X, 60-62; 
On Privateer- 
ing, VIII. 

Commercial Treaties. The governments <>i" Kurope 
secure to thrir subjects >ome -hare in the 
American trade hitherto monopolized by Great Britain. 
Karly in the course of the War fur Independence overture- 
made by our commissioners at tin court- of Holland, 
.ce, and Spain look' id commcn ial negotiation-. 

On the same day on \vhich tin- treaty of alii. con- 

eluded between Louis XVI and the seceding > 
(January so. 1778) a treat;, '.tlili-hing mu- 

tually advantageous trade relation- between France and 

the I'nitcd State- of America. Fi-hLng rights on the (irand 
.P r** V*t i i IUT? v 

Banks^were to be shared on equal terms by French and 

American fishermen, trade with the French West Indies 
was thrown open to our \, -,,1 France was aured 

the most favorable terms in American port-. The two 
nations entered into important guarantees concerning the 
exemption of neutral trade from the devastations of war. 
The citizens of each were permitted to trade freely with the 
enemies of the other, and th'e principle that free >hips 
make free goods and free passengers \\as clearly enunciate* 1. 
Only munitions of war and persons en.^a^ed in the military 
ser\ "ice of the enemy were subject to capture. Privateer- 
ing was abandoned so far as affected the signatory po 
" the citizens of each party " bein.u "prohibited from taking 
commissions from a third party to cruise a.Ljain-t 
other." The introduction of the-e adxanced principle^ 
of international law into the fir>t treaty negotiated by 
the United States had deep significance. In the next ten 
years most of the nations of Europe followed the lead of 
Russia and France in the effort to secure neutral trade 
against the devastations of war. Benjamin Franklin 
negotiated the treaty with Prussia (1785) in which the 
exemption of private property from confiscation and the 
immunity of neutral ship- wa< 'guaranteed, and privateer- 

vas abandoned as between the contracting p 
Contemporary treaties with Sweden, Denmark, and 
Portugal were framed to the same intent. In his tr< 
on war and on privateering, our fir-t great diplomatist 

I ' I 

clearly stated his own . that war. though a 

sary evil, should do a> little harm as . noo- 

1 ' i i 795 ft treaty of e- A as concluded with Spain. 

war, and their cargoes not subject 

to seizure. N .1 States 

was to take out 1< a hostile power 

\\ith the intent to prey UJMUI A ish com- 

merce, and M. -e to be treated as pirates 

in the admiralty ouirts. The only serious occasion for 
war between the two nations was successfully aed. 

needed the western boundary of thr t'nited States Phldn. 
.hannel si,,ippi. and fre. 

;H,rarily granted, 
togethrr \\ith rights ,f deposit at New Orltv. 

Napoleonk Wars a contest that was 
to en rars and t<> invoi 

md and Frai urope 

to set* o>mbatam> stipulations as to the rights 

of neutral trade. ith Great pitkln. 

Britain nr^ntiatrd liy Jhn Jay in 1704, no s.. . lll! , , 

stipulations as to neutral trade were obtained. Not am 

:nunitin tmly. l>ut naval stores and ftKn: 
ttl for the regarded contraband 

of war ai .\ithmit indemni 

nd the privilege of privateering was upheld. 

in sp 

commissioner. Some abate Acts 

was, however, seci an vessels were accorded 

access to the ports of the Br I : urope and 

Asia, hut this concession was offset l>y the limitations 

:ed on the West India trade. American vessels 

irthen were to be allowed to 

trade with Jamaica and the Barbadoes, provided : 
earrir KM!S jinxlueed in the States or in these is- 

l ut i his grudging concession was made on condr 

140 Indus trial History of the United States 

that our government would surrender tin- ri^hl to trans- 
port molasses, sugar, coffee, cocoa, or cotton from Ann TU a 
or the British West Indies to any part of tin- world. The 
price of entry to the coveted ports was to be the loss of the 
tying trade in the products of the-e inland-. except to 
American markets. This article of tin- treat; 
by the Senate, and commerce with the HritMi West Indies 
only continued on sufferance. 

Notwithstanding it> un>ati>factry character, the terms 
of the treaty with England gave great offense to France. 
The Directorate declared the treaty of 1778 at an end; 
damaging restrictions were imposed on our commen 
the French West Indies, flour and salt fish our stock in 
trade being excluded, and it was decreed that he: 
French men-of-war and privateers would " treat neutral 
vessels either as to confiscation, as to scan he- or capture 
in the same manner as they shall suffer the Finish to 
treat them/' The American government found itself 
involved in a troublesome controversy with the repre- 
sentatives of the new Republic, who naturally held that 
France was entitled to some return service for the aid ren- 
dered the United States in the closing years of the Revolu- 
tionary War. President Washington and his advi>er< had 
much ado to keep French sympathizer- in the United > 
from making war on England, the common antago: 

Legislation in Behalf of Manufactures. The \.> 
Tariff Hist, industries set on foot during the war when there was little 

I, or no importation and domestic goods had a pru 
Rabbeno, monopoly of the home market, were threatened with ruin 
111-133. now that the Peace had opened our ports to the commerce 
Sheffield, 4. o f the world. English manufacturers had an accumulated 
stock of woolens, cotton cloth, and ironware that must he 
disposed of even at a loss. They were ready to sell their 
goods at 25 per cent below London prices in order to recover 
their American custom. European merchants also 
eager to gain admission to the promising market hitherto 
monopolized by Great Britain. Ship- hearing -ail duck 
and linen from Holland and Russia, muslins, nan 

National Btgimmings i.;i 

and silks from India and thronged our ports, 

id eager purchasers, for wealthy Americans bad 

had enough of homespun and seized their first chance 

>uy finer stuffs. In th- year :ig the Peace, Ptakfa. 

;> worth of goods was brought 
$3,746,725 was exported in exchange. By 1700 
we had accumulated an unfavorable balance of trade to 
the amount of $53,092,655. The discrepancy had to be 
made good in gold and silver, commodities that could 
1* spared American manufacturers protested 
that, handicapped as they were by high priced labor and 
lack of machine ry. they could in an open 

market with the products of English factories and Ori< 
looms, and they begged for protection. A ad- 

dressed to Congress by the tradesmen and manufacturers 
of the town of Baltimore represented the sentiment of the 
manufacturing sections of the coun< the close Amubof 

of the late war, and the n of the K< 

have observed with serious regret the manufacturing 
and the trading interest of the omntry rapidly el- 
and the attempt* of the State Legislatures to remedy 

heir ohjei-t ; that, in the presen' holy 

state of our conn- i umber of poor increasing for 

want of employment, foreign debts accumulating, houses 

and lands depreciating in value, and trade and manu- 

;ig and c the 

Supreme Legislature of the t'nited States as the guardian 

of the whole empire, and from their united wisdom and 

. and ardent love of their country, expect to 

derive th.u aid and assistance 

their ju-t apprehensions, and animate them with hopes 
cess in future, by imposing on all foreign articles, 
i can be mai as will 

a just and decided preference to their laUtr-*; !:-' 
nanting that trade which tends so materially to injure them 
and impoverish their country; HUM in their 

consequences, may also contribute to the discharge of the 
national debt and the due support of the Government." 

142 Industrial History of the United S 


I. 102, 168, 



sics, I, Ch. 


I, 250-262. 

I, 195-208. 

Tin- levying of customs duties, not merely for revenue, 
but for the protection of home manufactures, was fully 
debated in the first session of the Federal Congre->. In 
the very able tariff debate of 1780. the interests of the 
ns of the country were dearly brought out. 
The delegates from the manufacturing states Penn- 
;m'a, \e\v York, Massachusetts and Connecticut 
suggested that the opportunity be utili/.ed to " protect our 
infant manufactu: .n'nst tin- competition of low- 

priced foreign goods. They urged that duties should be 
so laid as to advance the price of the competing import 
to the point at which the domestic product could sell with 
profit. The agricultural states were, in general, opposed 
to import duties, since they were accustomed to rely upon 
foreign manufactures, and the enhanced price would 
amount to a tax on consumption. Kach delegate ad- 
vocated protection for the products of his own state, but 
deprecated the duties on commodities purchased by his 
constituency. For example, Fit/simons of Penn>ylvania 
proposed protection for the steel industry recently e 
Lished in that state, but Tucker of South Carolina protested 
that " the smallest tax on steel would be a burden on 
agriculture." A compromise of these interests was ef- 
fected at fifty-six cents a hundredweight. Filxsimons ad- 
vocated a duty on beer, representing thai the brewing in- 
dustry, both in Philadelphia and New York, wa-> one 
" highly deserving of encouragement." Malt liquors 
were, he argued, less intoxicating than rum, and U 
element of diet were far preferable. This consideration, 
together with the indirect advantage that would accrue 
to the growers of hops and barley, induced Congress to 
impose a duty of five cents a gal Ion on ale and beer. Penn- 
sylvania's delegates further desired protection for her 
r manufactures, arguing that the capacity of the mills 
established to meet the demands of the revolutionary prc.-s 
was sufficient to supply the mar hi- and the neigh- 

boring states with the coarser grades of paper, and that the 
industry would be ruined if the protection accorded by 

National /thinnings 143 

the state tariff was now withdrawn. A <luty of 7.5 per 

m was voted without debate. The chandlers 

i and those o: loss., had brought 

the manufacture of wax, s|*Tmaceti f and tallow candles 

to such a degree ot expected in a few 

yean the needs of the wt isphcrc; 

but ' -<1 against wholesale importa- 

.md Russia. It was urged that candles 

iiually be m.i- u aj.rr than could 

.1 small encouragement was hd< 1 . .ut t . . t ! 
since the raw materials were to be had in almnda 

MX on light was protested < r in tin- interest 

nheless, a duty of two cents a pound 
was imposed on tallow and si u wax and sperma 

candles. Carroll .land asked for and secured a Bbhop, 

lass manufactures in the behaJi 

of works recently established near Frederick town. 

The manufu uterests of New England were by 

cans niT delegates asked that 

the iron works of 1 be secured 

in their hold on the home market . and a duty of 7.5 per 

vas accordingly la; ;>'sanch< \rnes 

issachusetts asked for a ity on nails. 

he argued, was a domestic in.. airing small 

capital and n mai hin< r that would 

otherwise be wasted. "In winter, and D Annabel 

little other w- -.-atquan nN are made 

l.y the children; )>crhaps enough might be manu- i, tJ7 . 
t-d in thi> way to supply the conti: tlu- 

->s could be prosecutetl in a similar manner in every 
state : equal indi. on and Tu 

ted in the interest of the men who were building 
houses and ships, but a duty of a cent a pound was gran 

n Boston, New York, 

Philadelphia had greatly profited by the removal of 

;:itUh rest - \|*>rtation and the monopoly 

of th \arket conset; the war. They were 

now accorded a protect 7.5 per cent, lest tho 

144 Industrial History of the Cnitc,/ St.ttt-s 

:ness be injured by tliecheaj)er felt hats imported from 
'and. The manul'acti;- -1 card-* had tome to be 

an industry of importance in the neighborhood of lio-toii, 
because of a labor-saving machine that reduced by half 
the number of workingmen required to bend the wire, and 
a duty of fifty cents per dozen, amounting to 7.5 pc 
ad valorem, was accorded them. Protective duties were 
Bishop, also laid on boots and shoes and galoshe-. Leather manu- 

1,450-464. f ac tures were in a flourishing state l>ec.i material 

in the shape of hides, bark for tanning, and oil for dr. 
was abundant and cheap, and no machinery was required. 
The business was carried on in the shop of the i 
craftsman with the assistance of half a do/en apprentices 
and journeymen. The war demand, coupled with the 
exclusion of foreign goods, had given a marked impulse 
to this industry. Lynn boasted two hundred n 
craftsmen and six hundred other workmen, and was ex- 
porting from one to three hundred thousand shoes per year. 
The leather industry centered then, as now, in the maritime 
counties of Massachusetts, but it had developed to con- 
siderable proportions in Connecticut, Pennsylvania, Dela- 
ware, New Jersey, and Maryland. Farther south where 
hides were tanned for exportation and nothing but the 
coarsest shoes for field laborers were made up on the planta- 
tions, the tax on fine wear was felt to be a burden. 

The interests of the Yankee farmers were considered in 
the laying of import duties on cheese and cider, though the 
proposition to levy customs charges on salt beef, pork, and 
butter was rejected on the ground that since we produced 
already more of these articles than we could consume and 
none was imported, such duties would be useless. Duties 
on nails, boots and shoes, ready-made clothing, etc., gave 
welcome protection to the by-industries of the farm! 
Yankee fishermen were protected against the- competition 
of their Canadian rivals by a duty of fifty cents a quintal 
on dried, and seventy-five cents a barrel on pickled, fish. 
South Carolina delegates were quite ready to accept pro- 
tection in the shape of a duty of sixteen cents a pound on 


\onal Beginning* 145 

indigo, and were MOOIM iVd tO the .luty .n i.mdlr- I,,-. MM 

beeswax was * product of that ( was 

urged in ' Valley. 

it this tax cnts a hundredweight 

i was protested by the cordage manu- 


'pewalk- amount 

needed was being imj>orted fr .the manu- 

red that the pr<-j>< e COrdagt 

v \\ould l>c jeopardized unless a compensating duty 
was levied on imported goods. Th. gland repre- 

sentatives secured a duty of sev< - a hun<i 

i tarred and ninety c< ntarred rope, 

two dollars a hundredweight on pack thread. Bot 

! assachusetts 

on the ground th.t- -ice of cordage would 

enhance the cost of ships, and by the- im-nhant> of South 
Carolina because more costly ships would mean higher 
it rates, 

A interest between producer and consun 
1 1- rial and the prod 

hrd arti. 'traded controversies 

.erepresc: \ : .* . i Amubof 

two cents a bushel wa^ Mal in In-half of the n 

recently opened near They were 

capal -\ht>lc of tin- 

d States if thi-ir owners might IK.- protected against JJ4 ~- WS> 
the competing product brougl 1 as 

ballast, but this duty was protested as a ta ! by 

the manufacturers of Pennsylvania. The rkh deposits 
of their own state had not yet been discovered. A duty 
> a bushel was laid on salt, primarily for revenue, 
though it ga\< tal protr nascent salt 

works of New Bedford and Syracuse. We had imported 
from Kurope and the West Indie-, in 1769, more than a 
million hu-hels, at a cost of one shilling a 1 The 

duty nearly doubli-d the price, and t he tax was energetically 

146 Industrial : of (lie Cnitt'ti 

Annals of 


opposed by the spokesmen of the New England fish. 
The cattlemen of tin- "hack country" of the Can.linas 
and the pioneer farmers beyond the mount. also 

large consumers of salt and could ill afford any addition 
to the already heavy cost of this necessity. The duty of 
fifteen cent- a gallon on Jamaica rum was hotly COnt 
by a Georgia delegate, not only bee HIM his i-onstituents 
were of the consumers of this beverage, but rum 

an essential factor in their, lumber trade with tin- 
West Indies. This growing commerce would be jcopardi/ed 
if the principal return cargo was subjected to so heavy 
a duty. When the rate was lowered to ten cents, tin 
England representatives urged that the tax of eight < 
a gallon on molasses be reduced in proportion, arguing that 
molasses was not only the raw material of the distill- 
but an article of general consumption, especially among 
the poor, and that it was an indispensable factor in New 
England's West India trade. The strenuous endeavors 
of Fisher Ames and his colleagues finally secured a reduc- 
tion of the duty on molasses to two and one half rents 
a gallon, with a drawback in case the rum was exported 
for sale. Other raw materials, such as barley, dye-tuffs 
(except indigo), undressed hides, furs, and all the metals, 
were admitted free of duty. The loss to the government 
in the way of potential revenue was considerable, but it 
was evidently unwise to levy taxes on imports so greatly 
needed by manufacturers. Increasing returns were realized, 
however, from the purely revenue duties levied on 00 
tea, sugar, wines, and other luxuries and from the live per 
cent ad valorem duty imposed on all non-enumerated im- 
ports. The customs receipts ($4,000,000 in 1791) 
soon adequate to the ordinary expenses of the government. 
Hamilton's Report on Manufacturers. In lygi Alex- 
ander Hamilton, Secretary of the Treasury, submitted to 
the House of Representatives a report on the status of 
manufactures, in which the contemporary argument for 
protection was clearly set forth. According to " 
financier, industrial conditions fully justified the levying 

'igs 147 

- duties, not men ' for the sake 

le/ending our infant man against the com- JV 

>n of countries better cquip|>rd i,,r the produ- 
hese goods. American i re handi- 

capped by si. labor and cap They must pay 

4 rates than their 1 ngli&h 
. and ih.-> hod not as yet secured textile maehi 
These disadvantages would soon be overcome if adequate 
.eld out to a-: line 

high-cost labor would be substituted 
labor-saving machinery and operatives of a cheaper grade 
could U- utili/.ed, - idren arc rendered iv. 70-19*. 

:id ihe latter more ca>i manufac- 
turing establt>: than they would otherwise be. Of 

I tenons employed in the cotton manufactories ^70^1793, 

.led that four sevenths, nearly, 9**- 
i ami i hildn : he greatest proper 

hildren and mam The 

led allc: on from 

A orid was bringing crowds of artisans to our ports, 
.t in a couniry where wages were high 
and the co>t of li\ .y in supply 

1 soon be made good. Capital, too, would be attracted 
from abroad by the promising opportunities for invest- 
here offered. 

lilton recommended the protection of textile manu- 
factures, metal and glass workv ries, together 
wiih all the tini-hed prod leather, wood, and 
cereals, Iml nol in the interest of th< rs alone. 
Our merchants might U- com[xrnsated for their losses in 
transatlantic commerce by the development of domestic 
trade and the raw materials of the > ->uld be ex- 
changed i nanufactures of the i states, 
mutual advantage of both sections. Our farmers 
and planters and lumU-rmen who were finding the foreign 
r their pnxl :s would 

;-. \\ith thr:- mand for food- 


Annals of 



Muffs and raw material-. Consumers would be oM 
to pay higher prices for the pr< mmodities during 

tlu- initial years of this policy, but tin- burden would be 
fully offset by ultimate gains. would eventually 

fall uiuk-r the operation of domestic competition, to a point 
: than that at which the foreign commodity, subject 
to he r ht rates, could be furnished to the American 

market. " When a domestic manufacture has attained 
to perfection, and has engaged in the proMculion of it 
a competent number of persons, it invariably bco 
cheaper. Being free from the heavy charges which ;r 
the importation of foreign commodities, it can lie afforded, 
and accordingly seldom or never fails to be sold cheaper, 
in process of time, than was the foreign article for which 
it is a substitute. The internal competition which ; 
place soon does away with everything like monopoly, 
and by degrees reduces the price of the article to the mini- 
mum of a reasonable profit on the capital employed. 
This accords with the reason of the thing and will 
perience." According to Hamilton, the United States 
could not afford to remain an agricultural community, 
dependent on foreigners for the purchase of supplies and 
the disposal of surplus products. National self-sufficiency 
was essential to national independence, and every da 
and section must benefit in the end by the promotion of 
an all-round industrial development. 

The tariff legislation of the years immediately following 

was quite in the spirit of Hamilton's recommendation-. 

There was a steady increase of duties on manufactured 

articles, the usual rate of 1789 being 7.5 per cent, that of 

1792 being 10 per cent, that of 1795, 15 per cent. Raw 

materials, with the exception of indigo, hemp, and molasses, 

left free from taxation. The list of revenue duties 

increased, articles of luxury, such as lemons, oranges, 

olives, spices, raisins, and wines, being selected to supply 

the government income. 

The Patent Law. Among the early enactments in- 
tended to promote the industrial development of the 


country, none was wiser or more timely than the pa 

1700 secured to the 
useful ait 



improvement therein not before known or used/' exclusive 
mon :<>r a UT feed- 

ing fourteen years. Under this guarantee of the benefits 

i HB 

accrt i a successful process, inventive genius re- 

ceived a notable stimulus. One of the l F>ply for 

a pat poly wa t he designer of a steam 

engine adapted to the propelling of a boat. The petitioner 

150 Industrial History of the c ';///<</ State* 


. l\ 
Report on 


in U.S., 



Cotton Cul- 
ture and Cot- 
ton Trade, 
Ch. I. 

I. 252-356. 

" trusts no interference with him in propelling boats by 
steam, under any pni it mode of appli- 

>n, will IK- permitted ; for >hould that be the 
the employment <>f his time, and the ama/ing p 
attending the perfecting of liis scheme, would, whilst they 
gave the world a valuable discovery, and to Ann 
peculiar and imjx)rtant advantages, eventuate in tin- 
total ruin of your petitioner. thousmd different 
modes may be applied by subsequent navigators, all of 
them benefiting by the expense and persevering lalx^r of 
your petitioner, and thus sharing with him those p; 
which they never earned." He prays, therefore, that he 
may be granted an " exclusive right to the u>e of -team 
navigation for a limited lime." Fitch anticipated that 
his invention would greatly benefit the trans-Alleghany 
terrilory. " The western waters of the United V 
which have hitherto been navigated with difficulty and 
expense, may now be ascended with safety, conveni- 
and great velocity; consequently, by these means, an im- 
mediate increased value will be given to the western terri- 
tory ; all the internal waters of the United States will In- 
rendered much more convenient and safe, and the can 
on them much more expeditious; that from these ad- 
vantages will result a great saving in the labor of men and 
horses, as well as expense to the traveler." The patent 
was allowed, and Fitch's steamboat, propelled by paddles, 
made her first voyage on the Delaware in 1787. Regular 
trips were made from Philadelphia to Trenton, Wilmington. 
Gray's Ferry, and return for the four summer months of 
1790, but the experiment was soon abandoned. 

A more immediately successful invention was Kli Whit- 
ney's saw gin for removing seeds from the cotton boll, 
patented in 1793. The East Indian method of extracting 
the seeds by hand or by roller mill had been in use. By 
the new process the cotton was dragged through a wire 
screen by means of toothed cylinders revoking toward 
each other, and the seeds thus separated from the lint. 
A slave could clean by hand roller only five or six pounds of 

National Hsginnimgs 151 

I turned out but pounds; 

from .>and pounds of cotton per 

. had sufficed 

he ion industries of :lu-rn states, hut 

a manufacturer! 1 long 

Iiulia, Brazil, and 

i ,.:ur . ;.- :. . :.' . i : . .... I'.!!:. -.:...-. : \\ ' \\ . : 

\\ the sea islands off the coast of South Car- 
.eorgia, a 

Under the -timuh: 
prole* three 

.1 pound, laid in 
1700, more cotton seed 
was planted and th< 
of 1 79 1 amounted t 
thousand bales. Thet 
red pro* 

uld be grown in the hill < 

Thousands of acres were soon brought under cotton 
culture, and the South had a new staple crop of transcen- 
inijx)rtance. In 1792 the Southern states sent 630 
bales of COtton \vool to Kn^la: 

f the c 7000 bales were exported ; 

l>\ iSoo the amount was 79,000 bales. 

Oth< T ii\\rntors proposii 

agricultural processes secured protection under the p 

law. A machine hreshing of grain was patented 

in 1709, and another for cutti: in iSo?. A plow 

.1 mold board of iron cast all in one piece was patented 

-07. But the fanners were slow to adopt igled 

ml. -pit* rost of l.i 

use the wooden plow clumsily plated with iron. 

They sowed their grain by h. it with sickle or 

152 Industrial History of the L'nitcd States 

cradle scythe, and threshed it out with llail and winnowing 


MGco. in. The cloth workers showed more enterprise. Strenuous 
c.71. efforts were being made to procure the t<-\tiie machinery 

.\hich the British government was jealously guardin. 

. and lose her recently acquired supremacy in * 
manufactures. The Bcvcrley Company, in a petition for 
aid from the General Court of Massachusetts (1700), 
;, >et forth the difficulties of the situation: "The 
dinary p machines unknown to our \ 

intricate and dilTicult in their construction, without any 
model in the country, and only to he effected by re- 
trials, and long attention; one instance among many of 
the kind is a carding machine, which ot the proprietors 
Siioo, and which can now lie purchased for $200. The 
.lordinary loss of materials in the instruction of their 
.ints and workmen, while so many are new, and the 
additional losses sustained by the desertion of these, \\ln-n 
partly informed, and by the increase of wages to prevent 
it, in consequence of the competition of rival manufa< ; 
The present want of that perfection and beauty in their 
goods, which long-established manufactories can exhibit, 
from the skill of their workmen, but principally from the 
use of machines which your petitioners have as yet found 
Wright, too e for them to procure." A few spinning 

-t.Evol. jennies an d stocking looms had been brought over, spite 
of the vigilance of the British customs officials. A spin- 
ning frame to be operated by a crank turned by hand and 
carrying thirty-two spindles was set up in Provide: 
1788, but the machine was too heavy to run by hand, 
and the attempt to adapt it to water power was un^uccess- 
ful. Tench Coxe, a Philadelphia manufacturer, had con- 
tracted with an English firm for a full set of Arkwright 
machinery, but the contraband model 1 and 

confiscated by the customs officers. However, a few 
skilled artisans from Scotland and Ireland had succeeded 
in evading detection and emigrated to the I'nii 
In 1 790 one Samuel Slater, who had been employed in the 


of the 

it factory, attracted by an ad 
hia Society of Artists and Manufacturer- 
make cotton rollers, <d to venture wu* 
\roerica. On arriving red into a Jj^J* 
ract with Moses Brown <: - ncc to build and ch 
operate a complete spinning mill, with carding, roving, 
and spinning machines, at the falls of the Pawtuck 



Slater had not dared to bring with him any models of the 
^h machines. He was obliged to draw the plans, 

the mechanics who fashioned the parts, supervise Cotton 
the construction of the factory and the regulation of t he- 
water power, and, finally, instruct the workmen h( 
operate the machinery. The Pawtucket mill was a success 

the start, and thus Samuel Slater inaugurated a 
industry, one destined to absorb much of the capital and 
entrepreneur al>il The water frame 

. and other improvements and in- 
followed in quick succession. American manu- 

154 Industrial J/is: 


. 111. 



Brissot de 




Annals of 

II, 2112- 
2I 4 I. 



facturcrs were so enUrj. 

proved so intelligent, that the original disadvantage.- 
rai>i(lly overcome, and tin- manufai t lire of cotton clotli of 
the coarser & on a firm basis. 

Regulation of the Currency. Then- >ul<l IK- no real 
industrial prosperity without an adequate .-upply of money, 
and tin- attention of Congress was early called to the neces- 
iing a medium of exchange that should have 
stable and uniform value. The hills of credit, thoroughly 
edited by the close of the war, had dropped out of 
circulation, and the supply of metal moi .- .^utlu ient 

to effect business exchanges even at the trade centers. 
The specie brought in during the war was of varying stand- 
ards and denominations. Knglish shillings and sovereigns 
French crowns, Spanish real- and pieces of eight, passed 
current, to the endless confusion of traffic ; hut the reviving 
trade with Havana brought in considerable silver, and the 
Spanish dollar was the coin most frequently handled. 
This came, by consequence, to be the unit of value in 
general use, and by 1790 had superseded tin- Ki 

When Hamilton, the financier of Washington's cabinet. 
was called upon to submit to Congress plans for a 
coinage system, he suggested the dollar as the most con- 
venient money unit, since it was familiar and popular. 
He recommended that both gold and silver he declared 
legal tender in exchange, since, though gold was the more- 
stable metal, the supply was insufficient to provide tin- 
needed volume. The Coinage Act of 1792 established a 
bimetallic currency, both metal- heing coined freely at tin- 
mint in the ratio of fifteen to one. The silver dollar was 
to contain .371.25 grains of pun while 24.75 grains 

of pure gold went to the making of a gold dollar. Tin- 
latter denomination was actually coined only in multiple.-, 
i.e. eagles, half eagles, and quarter eagles. For fraction;d 
currency, the decimal system, BI 
adopted, the smaller denominations heing coined in copper. 

The available supply of metals, gold, silver, and coppei, 

VV' 155 

was BO far short of the money need of the country that a 
pap* vfttcal necessity. The power to 

lit and mak #U tender in pay- 

' the Federal Go 

1 on>tiiuti>n, a clause i 
ity having failed to pass in the Con 
by a vote of nine states to two. Bank notes issued with 
sufficient guarantee ol however, be 

made to serve the pur| *.< !i nised that the 

Federal governim y needs of the 

r Y by establishing a national bank authorized to issue 
i safe business principles. The sol- 
bank was to be main- . subscrip- 

$10,000,000 lint II. Bk I. 

bonds paying 6 j - st , and redemption of the 

> was limited to this readily convertible stock. The lumihoo 1 * 
most successful model for such a credit money was the Work*, in. 
Bank hod had been successfully J& * 

'he bank .rrica in Philadel; Amubof 

bank of New ^ v. and the Massachusetts 

bank of Boston. The business advantages of a national as 
.red with a state bank wen- rnilton's 

report. The sale of bonds would afford a safe in vest r 

lie capital, the prnj>er: the 

country illation of small capitals, 

the bank could make loans t enabling 

rprises otherwise impost 

was then interpreted, 

Ur value, but being redeemable on de- 

. . 

all the purposes of spc* >nal bank issue would 

be a welcome addition to the volume of the currency and 

i. Hamil: ultima!. -ede private 

bank issues, since the n h<- notes was assured 

by g t bonds, and uld pass cur 

i >arts of t ry and facilitate exchange between 

distant secti<> 

ted States was chartered in 1791. 

I $6 Iiulnsti. .'.vj of tlu United States 

( \ 


i; ..:>KS 

The stock was over-subscribed by four thousand - 1 
within two hour- after the opening <>: tin- hooks, and the 
hank was opened lor bu>inc>s in December oi' that ; 
The resuli .11 that Hamilton had antic ipated. 

special demand for govern nu-nt hond> brought thcM-ccrtiii- 
cates up to par and plated the. ihe I'nited S' 

on an assured basis. The national hank note-, being read- 
ily convcrtihle. v, . win -re received as equivalent 
to specie, and the i.->ucs of the more dubious st;r 
were speedily discredited. The success of this great finan- 
cial enterprise once guaranteed, the business interests of 
the country rallied to the support of the central govern- 
ment, for cxcry man who held United States bonds or 
dealt in national hank notes was concerned to maintain 
the solvency of the Federal Treasury. The management 
of the bank was conservative and wise, and as a business 
enterprise it was eminently successful, paying s per cent 
dividends from the start. Nevertheless, when, in 1810 
and 1811, the proposition to recharter the National Hank 
came before Congress, there was general opposition on 
the part of the Democrats, who held that the Federal 
government had no constitutional authority to establish 
such an institution. The partisans of the state banks, 
moreover, denounced the national bank as un-American, 
and scorned the " British gold " that had been attracted 
to this investment. Gallatin, the Secretary of the Trea 
used all his influence in behalf of the bank, declaring that 
neither the government nor the people could easily disj 
with this important financial agent ; but in vain. The 
bill to recharter failed by a narrow majority. In the House 
the vote stood si to sixty-four; in the Senate it 
was defeated by the casting vote of the Vice-President. 

The Westward Movement 

Turner, The first decade of our national history witnessed a 

New West* K reat w & ve of migration into the trans-Alleghany territory. 

The era of the t raj >j .er and the trader 1< mg hunter " 

National Beginnings 157 

and the -elf-api*.: 

exprr. stage was at an end, and now that some ^ 

measure of peace and security was at .en of wealth 

reeding begai 1 1 i ucky and Tennessee, 

milics and household goods, together with 
slaves and capital suffit ; resources ch. xill. 

<>f the country. The pioneer fanner gave way to the 
planter, and tobacco culture and stock raising on a large 
scale superseded the primitive industries of the back 

rtfuin industrial foothold i Wlnur- 

states, car he newly acquired ter take up 

inds and make a fresh start in life; and 
emigrants from Ireland, Great . and Germany 1!I 

crossed the sea wbers, seeking among Franklin'* 

thcjx id trammels JJjJj^ 111 ' 

opportunity to earn a living as independent farmers, 
Speculators, too, crossed the mountains, bearing titles Wridapof 
more or less v in forest, hoping SSSft^ 

to reap fortunes fr< iblc rise in price. Wash- x, 416-419. 

ington had protested agaii rage for sp< 

M-stallinK if land . >t of th- 

asserting that " scarce a \ alual)le s|x)t, within any 

in these 

times talk \\ ith as mut and 

500,000 acres, as a gentleman : of 

1000.' il irged that Congress should " fix such a price 
t he lands ... as would not be too exorbitant and 
hurthensome for real occuj t high enough to dis- 

courage monopoli. 

The Ordinance of 1787. The : he territory 

n>rth .-I .is undertaken ur. nal 1" C- 

ilties were too great to be mastered 

l>y\ N -rthwest I was Wianr. 

werful Indian tribes resentful of invasion 
A aq>ath. while British garrisons 

stil >ng forts on Lake Erie, ! Sandusky, 

and Miami, pending the adjudication of war 

1 58 Indus!-. tory of the United .S'/,/,v.v 

m '. 


. II. 


Oi. VI. 







Ch. V. 

Jurisdiction of the territory was disputed by Virginia 

.mia, New York, Connecticut, and Massachi. 
each of which claimed to have inherited >ome portion from 
the original Briti-h grant-. The land- \\rrr un-ur, 
and the form of government undetermined, and the soldiers 
who had received grants in this wilderness thought them 
about as valuable as " quarter i the moon." 

The bringing order out of this chaos wa- the la-t work 
of the Congress of the Confederation. The several 

induced to cede their unsubstantial claims to the 
central government; United States troops were sent to 
hold the Indians in check, and peace ally concluded 

with the tribes along the Scioto (1784). A systematic- 
survey of the land was undertaken in the following year, 
and the country was mapped out by ranges into town- 
ships, sections, and quarter sections, The section, one 
mile square, and containing six hundred and forty a 
became the typical farm. The land was offered to in- 
dividual bidders by auction sale at a minimum price of 
$i per acre, plus a small charge to cover the actual cost of 
survey. In 1787 a groupof New England men, two hundred 
and eighty-five of them officers of the Continental army, 
petitioned Congress to determine the conditions of settle- 
ment in that part of the Northwest where their bounty 
lands were to be located. Their representative, hi. 
Manasseh Cutler, submitted the conditions that the would- 
be settlers held essential: political and civil lil 
religious toleration, and the prohibition of slavery. The 
Ordinance of 1787 guaranteed representative govern: 
to the people who should inhabit the Northwest Territory, 
and provided for the ultimate formation therein of from 
three to five state- that -hould be coordinate under the 
Constitution with the original thirteen. Thu 
settled for all time that the new colonies were not to be 
exploited for the benefit of the parent states, but were to 
become autonomous and coordinate commonwealths. 
Schools and the higher education were to be maintained 
by the proceeds of land sales, one section in every town- 

\\ rsi I:I;N i. \M>S 

. . .. . . - 

160 Industrial JI f the United 5/<v 

ship being reserved for its public school. \\\ far the most 

important clause in this fundamental compact be: 

the original >tate> and the settlers of the territory WU the 

stipulation that neither slavery nor involuntary servitude, 

except for crime, was to be admitted into tin- region. 

M. Master. Persons already held as sla\ :it emancipated, and 

111,521-528. fugitive slaves taking refuge in the territory were to be 

restored to their masters; but slavery as a labor system 


Immediately after the passage of the Ordinance, tin- 
Ohio Company purchased one million five hundred thousand 
acres of land at the mouth of the Mu>kingum River and, 
in New Kngland fashion, founded a town, Marietta, under 
the guns of Fort Harmar. In the same year the Miami 
Company, under direction of J. C. Sy mines, purchased 
one million acres farther down the Ohio, and there, bei 
the Little and Great Miami rivers, Cincinnati was built. 
Symmes's settlers were also soldiers, but they came from 
Roosevelt, the Middle states. During the latter half of 1787 more 
In - '5- than nine hundred boats floated down the Ohio, carrying 

eighteen thousand men, women, and children, and twelve 
thousand horses, >ln-cp, and cattle, and six hundred and 
fifty wagons. The westward journey was no longer 
difficult, dangerous, or even expensive. An experienced 
pioneer thus describes the trip as it might be made in 1793. 
Imlay, " Travellers or emigrants take different methods of 

transporting their baggage, goods, or furniture, from the 
places they may be at to the Ohio, according to circum- 
stances, or their object in coming to the country. For 
instance, if a man is travelling only for curiosity, or has 
no family or goods to remove, his best way would be to 
purchase horses, and take his route through the Wilderness ; 
but provided he has a family, or goods of any sort to re- 
move, hi- bc-t way, then, would be to purchase a waggon 
and team of horses to carry his property to Redstone Old 
Fort or to Pittsburg. according U he may come from the 
northern or southern States. will cost, 

at Philadelphia, about 10 (I shall reckon everything in 

horse* al> < .u h , they would cost something more 

Baltimore and Alexandria. The waggon may be 
canvas, and, if it is the choice of the people, 
h the greatest *a 


..HI- .1 UfDi 

n the whole distance on the different roads. To allow 
the horses a plenty of hay and corn would cost about is. 
prr diem, each horse ; supposing you purchase your forage 
in the most economical ma: he farmers, a 

pass may want it, and 

cany it in your waggon; a; inn-keep : ^u<t 

thrir ;>' .mily I would 

:usc in the same n .ml by h > or three 

camp kettles, and stopj when the weather 

162 Intiustriii/ History of the I'niteii 

is line upon the brink of some rivulet, and by kindling a 
fire they may soon dress their food. There i> no impedi- 
ment to the-e kind of things, it is common, and may lie 
done with the greatest security ; and I \\mild recommend 
all IKTMMI-. \vho wish to avoid expence. as mm h a> po^jble 
to adopt this plan. True, the cli inns on th>M 

roads are remarkably Me, but 1 have menti 

those particulars as there are many unfortunate people in 
the world, to whom the sa\ cry shilling is an ol 

and u thi> manner of journeying i> ><> far from being dis- 
agreeable, that in a fine season, it is extremely pleasant." 
Flint. Once arrived at Pitt-burg or Wheeling, it was ea>y to build 

^"Tast* a fl atDoat anc * fl at down t() tlu> inu>n(!t>(j location. Alter 
Ten Years, 1 7&7 ^ e Ohio was the popular route the great ;n 
13-16. through which the lifeblood of the nation was driven into 

the new West. In 1792 there were twenty-live hundred 
people on the Ohio Company lands, and two thousand 
i :l lc, in the Symmes settlement. By 1800 there wen tli 
CMd North- hundred settlers in the Connecticut Reserve on Lake 1 
Cb^xix anc * t ^ e I )0 I )U ' at ion of Ohio territory amounted to fifty-five 
thousand souls. 

South of the Ohio. Into the lands south of the Ohio 
River settlers were free to bring their slaves. Tobacco, 
hemp, and cotton could be grown to advantage by slave 
gangs, and the climate was too warm to make field labor 
popular for the white race. When Kentucky wa 
mitted to the Union in 1792, her constitution contained no 
restrictions on slavery. When the South -itory 

organized in 1790, the Ordinance embodied all the 
provisions of the Northwest the pro- 

hibition of slavery, and North Carolina had made her ces- 
sion conditional on the free importation of slaves into this 
territory. \Vhen the Mississippi territory wa- acquired 
by the United States and it- territorial government was 
established in 179*, all the articles of the Ordinance <>i 
were adopted "excepting and excluding" this much-de- 
bated restriction. 

South of the Tennessee the conditions of settlement 

164 Industrial History ,-/ tJic I'niti;/ S 


Land Corn- 

Am. State 
Public Lands, 

; 880. 
I, 218-222. 



, III. 


differed from tho^e that obtained in the Oliio Valley, north 
or south. Georgia had withheld tln> ; from the 

;uil jurisdiction for a full d< : he other 

69 had ceded their Western lands. In the 
interval M-\cral speculative land companies had h 
tered and allowed to e>tahli>h title to va>t trait-. Tin- 
lands were sold to tin- v. ithoiit regard to 
tin- rhararU-r ol tin- Settlements lhat ini-hl l.- planted. 
Tin- ])urrhastTs srnt tln-ir itry with 
iu-^ro >lavi-s to dear tin- fo OttOD 
in tin- fcTtilr upland vallrys. Cotton, lil.r tohaci-.. 
rice, is a crop that re-quirts a lari^c amount of unskilled 
labor at certain seasons of the year. It can he culti 
most economically in extensive tra. !n-aj> 
laborers. Sim c the industrial advantage reeled with the 
1 estates, the man without capital w.< down into 
the pine barrens or back into the hill- v. hen- the clay soil 
was unsuited to the cultivation of cotton. Littl< 
remained available when the L'nited States land oi 
were finally established. 

The Sale of Public Lands. The public domain 
originally regarded as an important source of revenue 
that would be adequate to the extinction of the national 
debt. One dollar per acre was. however, hardly sufficient 
to cover the costs of survey and registration, and. 
wholesale purchasers got considerable reductions on this 
price, the actual income on account of land Kile^ fell sh,, r t 
of expectations. In 1796 the price to individual settlers 
was raised to $2 per acre, but payments might be made 
by installment. To secure hi> claim, a man must dt 
one twentieth of the purchase pi dition to the 

costs of survey, registration fee, etc., amounting to $11; 
one fourth of the total price must be paid within forty 
days, one half within t rarths within three 

years, and the whole sum within four year> after entering 
the claim. Six hundred and forty acres might thus be 

D up with cash to the amount of S^-;i. \< 
money was scarce, but it wa> not impossible to secure 

this sum at the rate of wages then pre\ 
Hik mil land patents 

later in>t.ilhi:. than thr proceeds of the cr 

as a safe venture. I Id a 

could Bailments as they fell due and be- 

nder the law of 

iSoo. .t and was resold, 

. ' 1 1 >rol .a nsidcrablc labor and some 

money ii/ 1 title only under protest 

oss was frec|ii' to pass relief acts for Am 

idinK th< hin EjfSTi^- 

>oo was repealed, and 

iltural Ian.!- was fixed at $1.25 per acre, c 
All the advantages of the crc<: 
secured t< 

\vas passed in 1801 in beha 

scitli-rs on thr Miami Company'-* lands. Symmes had J*m Flint. 
;lnll thr : -vas l * a ** 

n who had taken iJ?, r , 
up land within the t: 1 that actual 

n the resale and at a 
:>reeni[>tion acts were passed 

for ot] d cases until, in 1830, a general law was 

ear to year, u 

more scr 

T the land had been sold to speculators. 
Irresp :iturers - - secured large tracts 

and at a wholesale j> 

the annual InstaOm I ' ( - -ld. 

recount: eat might be shipped to east 

\vas a Sflfe venture, hut t! n of the 

L.-l with their own produce 

and had much more trouble in nurling money obliga- 

1 66 Industrial ; <>/ the I'ni: 


Travels to 


ward of the 


Imlay, 51, 

I, 116, 122. 

Need of Transportation Facilities. Tin- pioneer fanner 
found no diiYiculty in supplying his family with the in -. 
ties of life, food, shelter, and clothing, hut to provide 
18 of purchasing thr article- could not be grown 
or manufactured on tin- place, lie muM dispose of 
surplus crops. Philadelphia was tin hi* h the 

settlers in the Ohio Valley looked for the supplies of 
and iron, firearms and ijunpo :hout which they 

could not support life. The goods came by pack 1 
or wagon over the Lancaster turnpike and Forbes Road 
to Pittsburg and thence down the river to Limestone or 
Louisville or beyond. During the spring Hoods there 
little hazard in Heating even heavily loade- over 

the Falls. The return voyage was more difficult. A crew 
of six men could pilot a vessel < Uirden <! 

stream, but twenty were necessary to propel a boat of five 
tons capacity by sail or oar up current. At Louisville 
the cargo must be unloaded and carrie 1 round the Falls. 
The costs of the return v ,t that it was 

not often attempted. usually broke up the 

into planks and sld them as lumber, preferring to ; 
the eastward journey overland. The products that the 
Western farmers could send to the seaboard .irrain, cattle 
and hides, hemp and tobacco were so bulky that the 
transportation charges ate up all the profits, and they 
exchanged for Eastern manufactures in ruinous d! 
portion. A cow and her calf were jjiven for a bu-1: 
salt, while a suit of " store clothes " cost as much as a farm. 
The value of most manufactured commoditie- was en- 
hanced in the American markets by the protective dutic* 
that brought the price of foreign goods up to the don 
cost of production. 

More promising outlets for Western farm product 
by way of the Great Lakes and the St. Lawrence to Mon- 
treal and Quebec, and by way of the pi to X; 
and New Orleans. Either way the advantage- of i 
portation were with the outirninj: freight. From ihoe 
Hritish and Spanish ports the goods might be shipped to 




Boston, New laddphU, or Charleston, or dir. 

ran market*. As trade developed, boat* were MidH. 
Unit M arid ta, and Louisville, and M-n < 

to th< rre cargoes of grain and salt meat ' 

exchanged for rum and stiver \\ traffic, in 

cue the goods were bulky, or could transport themselves, 
as cattle, hones, and slaves, followed the buffalo trails or 
r roads back to the settlement* t*>th the 

he Spanish frontiers offered abundant op- 
for smuggling, the profits of this foreign trade 
ban could be derived from commerce 
\\ith t)u- I .i-t.-::i markets. There developed, in conse- 
e, a marked antagonism of interest between the agri- 
cultural communities beyond the mountains and the ma 

sections of the seaboard. 
The Cumberland Road. 

ted in the Mleghany country, or saw more Uw . fRoa ^ 
clearly the necessity for adequate transportation facilities, c ^ \ g v . \. 
than President Washington. As a young surveyor hi 
had blazed the trail across the divide betweei l *t. 

and : >ngahela, named, from his Indian guide, 

Nemacolin's path, and he was in command of the Virginia 
troops that widened the trail into the road that was trav- 
ersed by Braddock's a: royal prodama- Writing* of 

A ashington had been awarded bounty lands 
<>n the ()hi<> River, and his holdings between the Great 

inawha amounted t<> thirty thousand acres. ^ 
At the i-ln-e ..! the Revolutionary War, the ex-comman< '*\w 

ef made a journey over the mountains to look after i w . 
this property. On his return he addressed a 1 

inin Harrison. Ciovt-rnor >f Virignia, urging that the 
undertake the building of a wagon road across 
mountains and so establish commercial connections with 

trans- Alleghany territory. "The Western settlers (I <*-i 
speak n< own observation) stand a 

The touch of a feather would turn them 
any way. They have looked down the Mississippi until 
the Spaniards. MT> iir.p.-litu !y I think for 

168 7W//.V//7/I/ History of the United 

threw difficulties in their way; and they looked that way 
for no other reason, than because they could glide gently 
down the- Mream; without considering^ perhaps the 
difficulties of tin- -. .L'ain. and the tim< 

to perform it in; and because thry have no other means 
of coming to us but by long land transportations, and un- 
improved roads. These causes have hitherto chirked the 
industry of the present M-I tiers; for except the demand 
for provisions, occasioned by the increase of population, 
and a little Hour, which the necessities of the Spaniards 
compel them to buy, they have no incitement^ to labor. 
But smooth the road and ma :he way f<r them. 

and then see what an influx of articles will be poured upon 
us; how amazingly our exports will he increa-cd l>y them, 
and how amply we shall be compensated for any trouble 
and expense we may encounter to effect it. . . . It wants 
only a beginning. The western inhabitants would do 
their part toward its execution. Weak as they are, they 
would meet us at least halfway, rather than be driven 
into the arms of, or be dependent upon, foreig: 

Commissioners were later appointed by Maryland and 
Virginia to consider means of improving the navigation 
of the Potomac and conferences were held in Alexandria 
(1785), Annapolis (1786), and Philadelphia (1787), but 
Weld, not till trade with the back country began to assume pro 

1,53-79- portions that interested eastern merchant-, was effective 
action taken. New York, Philadelphia, Baltimore, and 
the new national capital were situated on waterways 
that led far into the interior; but their citizens saw that 
the full advantage of this opportunity would not be real i /id 
until goods could be freighted across the mountain- hi 
1802 Congress voted to appropriate one twentieth of the 
proceeds of the sale of Ohio lands to the making of " public 
roads leading from the navigable waters emptying into 
the Atlantic to the Ohio " and on through the Northwest 
Territory, as might prove serviceable. The Cumberland 
Road, or the National Turnpike, as it was known in 
its westward extension, diverged from Braddock's 

/ V A ' inning* 

lion town, Pennsylvania. crossed the MonongaheJa 
at Redston< t ami the Ohio at Wheri 

The surveyors followed a piom - Zane's trace, to M. &u*r. 

Xanesvill rough Co- "' 

.ipolis to Vandalia, by 1838 I .*ts 
y wagon road are always higher than by 

hones. he bulk of traffic abandoned the 

reimportation was available, e.g. at . 

iiongahcU and at Wheeling on the x. JTJ-JTT. 
ior sections of Ohio, Indiana, and 40* 4,4. 4 ;. 
Illinois were opened up to settlement and trade in much , 
the way Washington had foreseen. 

Galiatin's Plan Impressed iccessity of open- 

ing up th and convinced that private enterprise * 

was inadequai task, Alben Gallatin, Secretary of 

Treasur)'. submitted to Congress (1808) a 'compre- 
hcnsivc s< rovements which he pro- 

posed should be undertaken in whole or in pan by the 
national go\ The succession of peninsulas jutting 

out i: from Cape Cod to Cape Hatteras lgo a, 

upted coastwise navigation and offered vexing ob- U4-s*< 
stades to commerce. They should be cut by a series of 
canals large enough for ocean vessels. The dangerous out- 
side passage from Bo*t <1 be avoided 
by a canal across the narrow neck of land between Cape 
Cod Bay and Buzzards B. -T communication be- 
tween Delaware and Chesapeake bays would do away with 
t roundabout voyage, and a canal between Norfolk 
and Elizabeth .la, would facilitate commerce 
between the Chesapeake and Albemarie Sound. The last 
two enterprises were already undertaken by private com- 
panies, but the work should be carried to completion by 
ial appropriation. Other local improvements, such 
as the cmnali/ be Merrimac the Middlesex 
Canal connecting Boston with Lowell, the Schuylkill and 
Delaware, th< s.huylkill and Susquehanna canals, were 
projects worthy of national aid. Canal communic. 

I/O Industrial History of t lie I'nitttt . v 




iv. rh. VI, 



1 1< > -mrr. 



Id be established from the Hudson River to 1 
Champlain and to Lake Ontario, and between the M 
sippi and Lake Ponhh art rain at New Orleans. Th. 

;rnpikes r.-iuu-rting Boston with New York, Phila- 
delphia. Baltimore, and Washington should he improved 
and extended so that a great post road rimning'from Maine 
to Georgia might in>urr transportation l>rt \\een the prin- 
cipal seaports. 

Between the seaboard and the Western states communi- 
cation should be furthered by the improvement of the 
Santee, James, Potomac, and Susquehanna rivers, and by 
the building of post roads to connect the head 
navigation on the eastward flowing streams with the corre- 
sponding western rivers the Tennessee, Kanawha, Mo- 
nongahela, and Allegheny. Water transportation in the 
Mississippi Valley should be bettered by canals around tin- 
Falls of the Ohio and the Niagara rivers. The pioneer 
roads radiating from Pittsburg to Detroit, St. L- 
New Orleans must be taken over by the national govern- 
ment, since local resources were insufficient to their 
factory completion. 

Gallatin's scheme of internal improvements was frus- 
trated by preoccupation in the war with England, but the 
most important of his projects were later accomplished. 

The Louisiana Purchase. Beyond the Mississippi lay 
a vast unknown territory, claimed by France and Spain 
and France in turn, but tenanted only by Indian tribes. 
The settlements at St. Louis and St. Charles were mere 
agricultural villages inhabited by the French refugees 
from Vincennes and Kaskaskia and by the trappers and 
voyageurs employed by Chouteau's fur trading company. 
The region to the north and west was terra incognita. 
Indian traders had pushed up the Mississippi to the Falls 
of St. Anthony and along the Missouri to the Mandan vil- 
lages ; a few adventurous Americans had visited the trans- 

issippi country and learned something of its infinite 

: >ilities; Daniel Boonc, driven from Kentucky by the 
inroads of civilization, was trapping and farming along tin- 

// />>'/ **/*/ 171 

|.\\rr Mi uri I'hiMj. Y.;.I:I WM , . .rr.i!:i:i- vfld km 

on the plains threaded by the Braxot River ; but at yet 

jnd was not coveted for iu own take. The chief 

significance to the frontier settler* of the west bank of 

Mississippi la .lander that the commandants 

stationed at St. Louis and New Orleans might int. 

their traffic down t) In iSoi the coveted 

right <>f deposit at New Orleans was actually suspended, 

and the Westerners clamored for aid,lest the trade so es- 

sential to the prosperity of the American settlements be 

strangled by the jealous Spaniards. When Louisiana 

ry was ceded to Napoleon Bonaparte (1801) and 

rst Consul proposed to found a colonial 

empire in this realm discovered by La Salle, President 

rm became alarmed A special envoy was dis- 

patched to Paris and negotiations for the transfer of New ' 

Orleans * I loridas or Louisiana were set on foot 

r the peace of the Mississippi Valley, Bona- 

parte had the sense to see that to maintain his authority 

.v Orleans would cost more men and money th.i 
could well spare. On renewal of the war with England 
he was easily induced to cede the whole Louisiana 

1 States for $15,000,000. 

man in that day knew the extent and resources of win**. 
the region thus unexpectedly acquired. Captain Robert -* 
Grey of Boston in the course of a trading voyage along the America. 
ast (1792) had come upon the mouth of vn. $$6. 
a great river named after his good ship Columbia. Marvin. 

Vancouver, the I.nglish explorer, sent a sloop to explore Ckv - 
.11 this same year, and made a thoroughgoing Uut. 
.get Sound, taking possession of the region j 
; Great Britain; hut what lay between 
Pacific Coast and the Mis> - -till to be dis- 

covered. At the suggestion of President Jefferson (1802), 
Congress authorized an exploring expedition which was 
to ascend the Mi> and cross the wa 

shed that separated the eastward from westward flowing 
streams in the hope of coming u upper reaches of 

\J2 Indus t Hiil History cf tJtc United .V 



- and 



the river discovered by Gray ten years In in In t he- 
spring of 1804 Captains I i Clark set out from 
St. Louis on thi> arduous cnterpri-c. They wintered at 
Mandan, negotiating ^( peace and establishing 
trading relations with tin- Indian tribes. During tin- sum- 
mer of i.so5 tlu- little party pushed on up the M 
to the Great Falls and beyond to the mountain I 
that marked the confines of Louisiana. There they cached 
their boats, and, finding Indian guides and horses, they 
crossed by Lolo Pass to the western slope of the Rex 
It was a task of enormous difficulty, but pluck and endur- 
ance brought the explorers at last to the Clear-water River. 
There they built canoes and so floated down the mighty 
River of the West to the Pacific. The return journc 
successfully accomplished the following summer, and the 
heroic captains reached St. Louis in September, 1806, 
having achieved a feat unparalleled in the annals oi 

Already in 1804 another exploring party, commanded 
by Lieutenant Z. M. Pike, had ascended the Mississippi 
to Leach Lake and unfurled the Stars and Stripes over the 
British trading posts in that neighborhood. In the next 
year Pike undertook to find the source of the Red River, 
the boundary betv. Spain and Louisiana. Ascend- 

ing the Missouri and the Osage rivers and thence cro 
the plains to the Arkansas, he reached the Rockies at tin- 
foot of Pike's Peak. Pushing southward in search of t he- 
Red River, the indomitable lieutenant led his party 
the Front Range to the sources of the Rio Grande, 
this was Spanish ground, and the exhausted e\p!< 
soon arrested as spies and conducted to Santa I e and 
thence to Chihuahua for examination. No treasonable in- 
tent being discovered, Pike and his men were taken bark 
through Te\a- to Natchitoches on Red River. Thu- 

ics of the newly acquired territory determined. 

Both Pike and Lewis and (lark were instructed to 

careful observation^ of the regions traveled. Their 

journals contain interesting notes on the fauna and flora 






seen -1 tlu-y endeavored to ascertain - 

thing f the industrial resour the country. Hut 

their contem; fully absorbed in the exploita- 

tion of tin- lands east of tin- Mi>-ivsippj and ;:a\e little 
heed to tin- new ac<|iii>iti. it might 

beutili/ed as a re-ervation f,r the Indian tribe- wh<. 1. 
the way of the settles in the Illinois country. Tin 
wealth, mineral and agricultural, of Louisiana tern 
and the commercial possibilities of the I 

ined to IK- developed by a later generation. Tin- 
only richo immediately availab UJ8 and the pn!its 
of the Indian trade. John Jacob Astnr, \'ork 

hant who had amaed a fortune in tin- China trade. 

.mtfinK furs for tea, divinrd tin- adv;-.- I the 

overland rou:' He pr)ji-i-t- 

trading p<t> alon.u r the (in-at I and the Mi 

Columbia rivers and proposed to send the furs taken 
in these uncxploited regions directly 
to Canton. A partynf traders and traj^per ! out 

over the :id Clark route, but the suj)plies were 

.rded by sea. After many and costly \ i . the 

et at the mouth of the Columbi . and 

there a trading post, Astoria, was built, tkiffjrtun 

\stor's project, the British fur traders, the N 
Company, contested the right of the American- to op 
in this region, and Astor's agents were induced to abandon 
the enterprise. A man-of-war living the I'nion 
came to the aid of the Northwesters, and A 
Fort George (1812). 

(I! \l 


Vindication of the Rights of Neutral Trade 

American Grievances. Jay's treaty had settled none 

i.-hiN iol questions at issue between m - 4 

her treaty. m^o- H.Mrrth. 

I'n-Milent Jefferson dttlino; 7 ^ 

he Senatt -r tin- inviolability 106. joo 

.or guarantee 
impressed into UritMi M 


Isles was lia -ment though he might have 

ralized as an American citizen. re of this 

polii h men-of-war were accustomed to cruise 

lc our hartx>rs, then haul merchantmen as 

rew, and claim the sailors who 

coul. i the case of the Chesa- 

peake, a cruiser 01 cd States was forcibly searched, 

and : n three Americans and one Briton were 

carried off in iron -ss than sixteen hundred remon- 

ailors were thu> impressed into the royal navy, 

md, hard bestead to make good the losses of war, 

was i the pract rce times the right 

.pressment had been formally prott 

avail. reign 

Offic 1 that thousands h sailors had de- 

serted from hi hips and taken sen 

can ves> MIT wages and more humane treat- 

^ht be expected. 


/intnstritj/ History of the U)i 

CmUender, Not OUF seamen only, but our me -n -antile inter. 

in jeopardy. England was mistress of the seas, for the 
ch licet had bern de>troye< ! Igar, and KuropeaM 

nation-, whether friends or foes of Napoleon, dared not 
risk a vessel out of port. Few flags appeared upon t he- 
high seas hut the Union Jack and the Star- and Stripes. 
The war had thrown the Kuropean carrying trade largely 
into the hands of American shipmasters, because the 
I'nited State- Wlfl the only neutral nation Assessed of a 
considerable merchant marine. Jealous of the com- 
mercial gains accruing to this formidable rival, I.; 
merchants and shipowners sent in vigorous protect 
the government set about devising a remedy. An order 
in Council of 1793 declared " all vessels loaded with goods, 
the produce of any colony of France, or carrying provisions 
or supplies, for the use of any such colony," liable to seixure. 
Under this order British men-of-war were authorized to 
waylay merchantmen bound to or from the French West 
Indies and to confiscate the forbidden goods. This \ 
had important advantages for Great Britain; Fram < 
deprived of supplies from her colonies, the Knglish treasury 
enriched, and losses were inflicted on American trade 
by one and the same seizure. In 1806 the coast of Europe 
from Brest to the Elbe was declared under blockade, and 
a neutral vessel attempting to make any intervening port 
was lawful prixe. Many an American ship, falling foul 
of a British man-of-war, was captured and conveyed to 
a British port, there to be sold for the benefit of her captors, 
and her owners and the merchants who had shipped the 
cargo were wholly without remedy. 

The object of the order of 1806 was to punish Prussia 
for her forced alliance with the enemy, but Napoleon, fully 
master of the Continent since the peace of Tilsit, met this 
attack by a counter stroke. The Berlin Jju^cjee closed all 
Kuropean ports to British vessels and British merchandise. 
land immediately retorted by an ortkr^ in_Council 
announcing that no netural ship might tra-'.- ranee 

or her allies until she had first touched at a Briti.-h port 

War of iSt3 177 

-lutics there. Napoleon thereupon 

issued t hi- Milan Decree, declaring every veuei complying 

h order " denationalized " and subject to 

< Britain nor Napoleon made any 

hese blockades by an adequate 

naval lie decrees served to justify the seizures 

itral vessels made occasionally by men-of-war, more 

privateers licensed by the warring powers, 
losses inflicted on American commerce were too 
heavy to be patiently borne, and Congress was besieged m 
by petitions from the merchants of the seaports Salem, 
BOM ..i, and Baltimore - 

great injuries suffered by the aggres- 
sions of the belligerent powers " and demanding protection. 
The authorities were perplexed President Jefferson, a ifovte. 
iiian and a planter, had no adequate conception of Cb. vn. 
mportance of the intere desired 

above all things to avoid war, and he hoped to bring both 
powers to terms by depriving th !*nefits of Ameri- 

can trade ; therefore he recommended to Congress in a spe- 
cial message (December 1 6, 1807 < de- 
vessels from the |Mrts of the United States." 
Within the work the suggestion of the President became the 
law of the land. The Embargo Act_ prohibited American 
vessels already in harbor sailing for 'a foreign cruise, every 
vessel returning to port was to be detail hantmen 
igners were excluded from American waters, 
cs navy and the revenue cutters 
were placed at the disposition of the executive for the en- 

I only transatlantic trade, 
but the profitable commerce \\ith th and 

Ct had developed dur. 

pean war was brought to a standstill, and only the coast- 

iradc remained open to our merchant marine. Lest 

this afford chance to venture out to sea, no vessel, not even 

the smallest fishing smack, was allowed to sail without 

' bonds, > reland 

the same in ti : States. In case of violation both 

178 ///////. r of the Unitcii 

Cargo and ve>sel <!. while owner and captain 

:e subject to heavy lines. 

I he effects of the Embargo were soon evident in dimin- 
ished trade. The value of the imports of iSc t half 
that of 1807, and tin tioiis of the Embargo year 

:ik to OIK- fifth those of tin- previoUfl twdve months. 

rrthcle>s. the decline in tonnage registered under 
the United States flag for the foreign trade was slight. 
Some .-hips were sold to English firm> <>r registered under 
the British llag, but most shipowners let their ves* 
idle at the wharfs, hoping f ( , r a reversal of the administra- 
tion's disastrous policy. The $50,000,000 of capital in- 
vested in shipping brought in no revenue, and thirty thou- 
sand out of forty thousand American sailors were suddenly 
thrown out of employment. Some defiant sea captains 
avoided the home ports altogether and made voyage after 
voyage between foreign lands, preferring to run th< 
of capture rather than incur the Mire losses of detention 
in an American harbor. Prices of foreign commodities 
doubled, while prices of domestic goods fell below the cost 
of production. Lumbermen and fishermen were reduced 
to beggary, and farmers, unable to dispose of their prod- 
uce, offered their lands for sale. The mercantile < 
suffered no less. In New York the Embargo caused one 
hundred and twenty bankruptcies and threw twelve- 
hundred unfortunates into the debtors' prison. An English 
traveler thus describes the first commercial city in the 
United States after five months of this ruinoi: 
" The port, indeed, was full of shipping: but they 
dismantled and laid up. Their decks were cleared, their 
"; nd lies fastened down, and scarcely a sailor was to be 

found on board. Not a box. bale, cask, barrel, or p; 

to be seen upon the wharves. Many of the counting 
houses were shut up, or advertised to be let ; and tl 
solitary merchant . porters, and laborer- that 

to be sec walking about with their hand- in their 

pock I -lead of >i.\ty or a hundred cartfl that i; 

stand in the street for hire y a dozen appeared, and 

ere all that remained of that immense 
as carried on a few months before, 
the waterside were almost deserted, the 
to grow upon the wharves, and the minds 
e tortumt h> the vague and idle rumors 
ujHm the arrival of every letter from 
a the seat of government." 
Kmbaigo gave way to nonintercoune with 
Great ^) Americans speedily availed them- 

selves of the golden opportunities of neutral commerce* 
MO our tonnage registered for foreign trade had 
reached . vears 

of our national history, u proportion of foreign 

trade car * vessels, which had fallen 

from 92 per cent to 86 per cent un<: tlucnccofihc 

Embargo, recovered to 91.5 per i 
The War. Jefferson's abstention policy served ncr 

-ights of neutral trade nor to avert war. 
Napoleon made a pretense of repealing the Berlin and Milan 
, : , . ni- .:,.-.. . -. V . . . , ,- 

no less burdensofi 

>. l>ut |: can products, 

notably cotton - >rt5, and the 

of seamen continued unchecked. In iXn .. 
assert i ! that usand American seamen had been lish sen-ice. War was declared in 

coasts were quii kly infested by a Ii 

fleet, and thereafter comment i urope was carried 

on a; -k. The war tariiT i Jui . doubled 

and tn-MoI tin- < iu tics ,m im|M>rttnl commodities. Imports 

and exports rapidly dedinel, until their combined value 

4) was but $:o,ooo,ooo, one seventh of the foreign 

: Hio. Qur iOiipowners faced ruin, and the tcmpta- 

-s and confiscations of th 

years preceding 1 retaliation on British commerce 

was too strong to be resisted. Spite of scruples as to the 

l8o Industrial History of the United States 

rightfulness of privat >any shipowners took out 

letters of marque and reprisal and armed their vessel for 
\var. Kvery species of craft merchantmen, coasting 
schooner, pilot boat, and li>hing >mack was fitted up 
with guns and ammunition and sent out to prey upon the 
enemy. From Salem, Gloucester, Marl.h lu-ad. and 
port, from New York. Philadelphia, and Baltimore, s< 
of privateers put out to sea, and even the Southern ports 
-Norfolk, Wilmington, Charleston, Savannah, and 
Orleans sent a considerable contingent. Sixty-five ves- 
sels were commissioned as privateers in the first three 

a of the war, one hundred and fifty in the first two 
month-. During the summer of 1812 one hundred prizes 
were taken, and but fifty vessels were lost to the enemy, 
only thirteen of these being privateers. During the three 
years of war the five hundred and fifteen privateers com- 
miioned by the United States government captured 
over thirteen hundred British vessels, most of them 
merchantmen carrying valuable cargoes. Congress al- 
lowed a rebate of one third the import duty on captured 
goods and offered $25 for each prisoner taken. 

The War of 1812 was a naval war. The exploits of our 
little navy, coupled with the devastations wrought by our 
privateers, forced Great Britain to recognize that a rival 
maritime power had arisen. A score of signal vict 
won in the English Channel, in mid-Pacific, on the Great 
Lakes, and in the Caribbean Sea, finally convinced the 
Knglish government that the United States must henceforth 
l.e treated with respect; but the immediate result was not 
commensurate with our successes. The Peace of Ghent 
adjudicated certain open questions as to boundaries and 

-tat us of hostile Indian tribes, but settled none of 
the prime matters in dispute. The American contentions 
that free ships should make free goods and that th 
should protect the crew were not incorporated in the 

'y, nor would the British commissioners consent to 
define a legitimate blockade. Nevertheless, Kngland 
quietly dropped her much-prized right of impre 

fOHrntcs of t/tf War of 1 8 1 

Ameriauis into her service, and having proved their abfl- 
t hemselves, our Mamen were thereafter free 

from mnliMuti.m I In- .ioMr-1 |>n-ti-r \\..n U thr I nitr-1 

States in the Wut .- was voiced by the London 

ret war with England made them inde- 
ir second made them formula! 
The Reciprocity Treaties. In the first two years fol- B*t. 

.- <>n the Peace, our shipping interests experienced ** 
a remarkable revival of prosper :ie of Manrfa. 

exports and imports in 1816 an to ten times that 

14. while thr t image registered for : rade rose 

from 674,633 to 860,760. Hut this welcome prosperity 
was short-lived. By 1821 the fort- nerce of the View. 

t'nited States had shrunk to half the proportions of 1816, <* vm 
and our ocean tonnage was less than in i;.,;. A 
of causes contributed to this lamentable decline. The 
r taritl of 1816 which discouraged import. 
ness crisis of 1819 which curtailed investment 
the development of manufactures and domestic trade that 9. 
tended to make us independent of f. le, doubtless 

injured the shipping interest; but t .-st blow was 

struck when Congress substituted reciprocity for the dis- 
criminating duties that had hithi: ricanr 

vessels against English .:: \\.-:. the intention Amubof 

of freeing our ships from the rest rnposed in Bri 

and European ports, we offered our rivals reciprocal free 
trade. Discriminating tonnage duties and excess duties .. . 
on goods imported in foreign vessels were to be repealed in contra* 

r as they affected the count rir- that >h..uld abolish 1815-1816, 
all discrimination against the shipping of thr t'r.ited States. M7-i$o6. 
Great Britain was the first avail herself of 

>us offer. On July 3, 1815, a convention was con- 
cluded providing tl 

torics of the United States and all the territories 
tanni Europe reciprocal liberty of commr: 

Our cliM riminating tonnage and customs duties were re- 
line |iiished in exchange f.-r the privilege of entering ports 
of thr Briti>h Isles without Irt ranee; American 

1 82 / 

vessels were to be "admitted and lm-|>italily received at 
tin- primipal settlement- of the Briti>h dominion- in I . : 
India"; DUt the pOttS of the British W< ' I remained 

dosed for fifteen years longer, and maritime trade with 
Canada was under tin- ban until 1850. 

It i> an open question whether we got more than we : 
in this, and tin- reciprocity treaties subsequently negotiated 
with Sweden, the Netherlands IV in, the I! 

atic cities, Hamlnr ten, and Lubeck, Olden- 

burg, Sardinia, and Russia. During thr following <! 
there was some increase in American tonnage engaged in 
foreign trade, but not in proportion to the i: 
population and wealth ; indeed, tor. ta steadily 

declined. The volume of foreign commerce gained but 
slowly, and the figures of 1806 and 1807 were not again 
hed until 1835. Notwithstanding Briti-h competition, 
our shipmasters managed to increase their proportion of 
transatlantic commerce for the iir>t ten yean of reciprocity. 
A line of fast-sailing packet- was established between New 
York and Liverpool in 1816-1817, and another in 1821- 
1822, a third line plied to London and Havre after 1822, 
and a direct line to 11 .ifter 1832. Our paramount 

advantages for the building of sailing ships enabled 
offer the most favorable terms, and thus for a time to mo- 
nopolize foreign commerce under a regime of a free, field 
and no favors. This advantage \vas largely done 
by the tariff of 1828, which imposed heavy duties on bolt 
iron, copper, canvas, hemp rope, etc., while offering no 
compensating protection to shipping interest.-. The 
Briti>h tonnage entering our port ^,947 in 1830, 

the year following it rose to 143,806, and the average for 
the decade 1830-1840 was 212,661. Under thi- keen com- 
petition freight rates fell disastrously, and the proportion 
of foreign trade carried in American vessels dropped from 
92.5 per cent in 1826 to 82.9 per cent in 1X40. 

Pitkin. The real gainers from the reciprocity policy were not 

the shipowners, but the farmers and planters, who 

Cb. IV. plus products were sent to foreign markets at declining 

Indus frinl Consequences of the War of 1812 183 

it rates. The value of our cotton exports rose from 

36,000111 ;;, and $64,661, ooo 

I hiring the same exports of wheat, flour, 

and tobacco barely held \\. not because of any 

the foreign demand, but because all available 

vcre converts : e and indigo 

:i$ of Georgia and South Carolina were turned 

growing of Sea Island cotton . the wheat fields of 

back cov. ere planted t green seed," 

r t >taple variety. Pn : ncreased from 1 56,000 

bales in 1800 to 540,000 in 1810, and 458,000 in 1816, and 

606,000 in 182' * birds of the crop 

was exported. It was estimated that $40,000,000 was 

. plantations, and t: planters 

cleared 50 per cent on their in during the early 

\, in when hi-jh pcicei prr\.iiird. 

The Fisheries. An A industry that McMuter. 

felt the ill effects of the war was the cod fishery. Freedom IV - 
to fish otT the Grand Banks and in other Canadian waters 
had been fully conceded in the treaty of i ;S ^. and our com- 
missioners wcr ted to secure an equivalent con- chvui 

cession in the Peace of Ghent, hut they tailed to do so. 
The English g< t declare* 1 1 hat t his was a privilege, 

not a had been abrogated by the war. 

-1 question was adjudicated in 1818, when Ameri- 471-500. 
can fishermen secured -.ithin certain Abbot. 

limited areas and to use such adjacent coasts as might b* 

their ti-ih. Populated bays and Uu ** 
harbors could be entered by our fish I ks only \\ 

The Cana- 

demandt D return fur tht^se favors their fish 

should be allowed full entry int ited States; but 

the t t-d against throwing open our 

t>. atui the war duties of $i a quintal on dried and 

us on pickled fish \v 

other h.i! nericans were not allowed to send fish 

h \\e-t In. ! juite engendered 

:. and even led t contests be- 

the ri\. 

184 Industrial . I 'nit id S 



I. 111-137- 

Development of Manufactures 

At the beginning of thr nineteenth century, in spite 
of the encouragement, legislative and otherwise, that had 
been given to manufactures, the United States was still 
in the main an agricultural nation. \\ >roduciim 

more both of food products and raw materials than 

imed in the country, and we could n.t provide manu- 
red commodities sufficient to supply the home market. 
In the natural course of trade our exports of raw mat> 
and foodstuffs would pay for the imports of manufactured 
goods. This was satisfactory to the -hipping int 

it insured profitable cargoes, to the farmer since it 
opened foreign markets for his produce, and to the consumer 

he secured goods of the best quality at low pi 
but it placed manufacturers at a disadvantage. 

Cotton Manufactures. The Embargo, the Nonin- 
tercourse Act. and the War of 1812 gave domestic manu- 
facturers a virtual monopoly of the home market i 
period of seven years. The exclusion of English goods, 
now as during the Revolutionary War, threw the country 
upon its own resources, while commerce being rendered 
unprofitable, business enterprise turned to manufacture! 
as the most promising available venture. Much of t he- 
capital withdrawn from shipping was invested in cotton 
mills. Slater's success at Pawtucket had demonstr 
the possibilities of this new textile industry, and men 
trained under his eye went out to set up rival establish- 
ments. The mills at Slatersville, Rhode Island, Pomfret. 
Connecticut, and Union Village, New York, were direct 
loots from the " Old Mill." For the first ten years de- 
velopment was slow ; and only four mills were in succ< 
operation in 1804. When, however, English competition 
was excluded, an epoch of extraordinary progress opened. 
In i >o 7 then- were fifteen cot ton mills running Xooo spindles 
and producing 300,000 pounds of cotton yarn annually; 
in iSii there were eighty-seven mills operating 80,000 
spindles, producing 2,880,000 pounds of yarn per year 

1 85 

and < -' 4000 men, women, and children; in 1815, 

500,000 spindles gave employment x persons, 

$15,000,000 per year. Rhode Island 
was the o 

miles of Providence were one hundred and thirty mills 
running 130,000 spindles and employing 26,000 operatives; 
r states were not far behind. Massachusetts 
chartered ilc companies between 1806 and 1814; 

New York chartered fifteen such corporations in the year 
1813; there were then five spinning mills in Paterson, 
New Jersey, and t-U-\ m in Baltimore. The mills of New 
England were generally run by water power, those of the 
West and South n , by hone power. Steam was 

first successfully used as a motor for spinning machinery 
at Ballston, New York, in 1810. 

The yarn spun in the mill was as yet woven on hand 
looms in the homes of the neighboring countryside. Many 
> had been made t the power looms recently 

introduced into the cotton factories of England. Machines 
had been patented in 1803 and 1804, \>ui they proved im- 
practicable. In 1814 Francis C. Lowell returned from a 
European sojourn bent on establishing in Massachusetts 

>n factory better than those of Manchest 
devised and constructed the first successful power loom 
set up in this country, and built, in Waltham, Massa- 
chusetts, the first cotton mill in which all the processes of 
spinning, weaving, and printing were carried on ui. 
one roof. The venture was a brilliant success. Other Ccnnn. 1860, 
looms were rapidly constructed and other factories equipped 
with this labor-saving device. lachine was soon 

adapted to the weaving of sheetings, ginghams, and sail 
Improvements were made in the processes of 
carding, spinning, and calendering, and in the central 
motor pov - work was so simplified that the looms 

1 be tended by women and the spinning frames by 
children, so that the more expensive labor of men was re- 
quired only for the heavier task> live to six sevenths 
of the operatives were women and children, a result that 

1 86 Industrial History of the C>iift . 


1860, Manu- 



Hamilton would have heartily approved. Tench Coxe, 
writing in iSi ^, waxed eloquent over the industrial miracle 
achieved. " These wonderful machim 
they \\ere animated beings, endowed with all the talent- 
of their inventors, laboring with organs that never tire. 
and subject to no expense of food or bed or raiment or 
dwelling, may he justly considered as equivalent t 
immense body of manufacturing recruits, enlisted in the 

e of the country." 

The value of our cotton manufactures in 1810 
$4,000,000; in 1815 it was $19,000,000, and nearly ade- 
quate to the needs of the country. In 1800 the spinning 
mills consumed 500 bales of cotton, in 1805, 1000 1> 
ten years later 90,000 bale- jiiired to feed the half 

million spindles. But the cotton crops out ran the dme-t it- 
demand, and, notwithstanding the increased consumption, 
the price of cotton wool fell from twenty-four cenN a pound 
in 1800 to sixteen cents in 1810 because the EnglMi 
market was closed. 

Woolen Manufactures. Cotton was " our only 
dundant raw material." The development of woolen 
manufactures, on the contrary, was retarded by the scarcity 
of wool. The effort to promote the raising of sheep, set on 
foot during the Revolutionary War, had not been very 
successful. The climate of New England, where the 
tation was most earnest, proved too severe, and mo 
the wool made up in the United States was still imp' 
the finer grades from Spain, Portugal, and Saxony, th 
coarse from Russia, Syria, and South America. The e 
of nonintercourse brought the necessity for a don 
supply forcibly before the public, and just at this jun 
the Peninsular War threw the Spanish flocks upon 
market. Enterprising farmers began importing merino 
sheep, and by 1809 there were five thousand in the country. 
In 1811 was organized the Merino Society of the Middle 
States. Prizes were offered for essays on dice], husbandry 
and for the best specimens of t Mi Imed. and the 

farmers of New York and New I < d with each other 

/// Consequent! R 187 

he quantity and qual etr wool dipt. Prices 

tied heavy expend rrino wool fold at se\ 

1 in 1811 and ranged from two to three 
dollars in IM ;. 

machinery, so successful in cotton manu- 
facture, was soon adapted to the spinning and weaving of 
wooh .inufacture of broadcloth was first 

atten ro young Englishmen, the Scholfidd 

machine, a spinning jenny, 

and a hand loom at N 4. The business 

was soon .-1. where the Housatonic 

; rnishcd reliable water power; and here during \ 
.im|Mrtui >d a successful industry was X % 

established. The SchoUidd factory wove the material 
u- suit of domestic broaddoth in which President 
Madison was inaugurated. The power loom was introduced 

-.Aland Hazard at South 
Rhode Island. Hazard had made a fort 
in t! India trade, but having lost heavily by con- 

fiscations under the orders in < band the 

water power on Rocky Brook and devoted his energies 
to doth manufacture. The machii reduced was 

intended to weave boot, susfx: d girth webbing, 

but it was found that the work could be better done on 
the hand loom. The enterprise was pursued, howt 
with courage and persistence, until, by 1828, a com; 
woolen factory, equipped with carding, spinning, and weav- 
ing machinery, and all run by water power, was in full 

Iron Manufactures were furthered by the discovery of 

.v fud, anthracite coal When the first ark load j 
of " stone coal" was brought down the Lehigh and Dela- a, 
ware rivers to Philaddphia in 1803, it was thought good 
for nothing but to " gravel foot walks.'* 

e lumps seemed an insuperable obstacle to 
its use as fuel, until one Jo-eph Smith, the invent. r and 
mam: plowshare, conceived the idea 

(18x2) of building >ver a grating so as to secure 

1 88 Industrial History of the L'>.. 

nger dral't. The plan was successful, and heat suffi- 
l to fuse iron was readily de\ eloped. The War of 
i8u ; he cargoes of bituminous coal 1'roni Kngland, 

and since. \\ith tin- clearing of tin the Mipply <>\ 

wood was growing scant, the iron masters of eastern Pcnn- 
sylvania fTCT to utilize the despised anthracilr. 

The most important development in tin- iron indt. 
UXt west of the Alleghanies. Ore was disc>\en-d in the 

valley of the Youghiogheny and a furnace set up in 1790. 
In 1805 there wire live furnaces and six forges i 
County, and three rolling and slitting mills and a 
furnace essfully established by 1811. The inm 

deposits of the river valleys to the north were being de- 
veloped in the same period. Because of her unexcelled 
vix, advantages in the way of water transportation, Pittsburg 
7,200, was the natural center for this rising industry. Ore and 
Iron were floated down the Allegheny River and the 
Monongahda to the foundries, rolling mills, and nail 
factories of the Smoky City. In 1810 two hundred tons 
of cut and wrought nails were made here. The output of 
the iron works of western Pennsylvania nails, h 
locks, and builders' tools, axes, spades, plows, and harrows 
for field work, knives, pots, skillets, and spinning-wheel 
irons for household use were shipped down the Ohio to 
the settlements, and on by way of the Mississippi to New 
Orleans. Sugar kettles were supplied to the cane planta- 
tions of Louisiana in 1804. The Pittsburg ironmongers 
had the advantage of abundant supplies of ore and ch,i 
in the immediate vicinity, and could easily undersell the 
wares sent overland from Philadelphia. Iron wa 
becoming the dominant industry of Pennsylvani 
west, and by 1810 her enterprising manufacturers furnMied 
half of the cast-iron produced in the United States. The 
state then boasted forty-four blast furnaces, seventy 
forges, eighteen rolling and fitting mills, and one hundred 
and seventy nail factories where nails and brads wer- 
by machinery. 

According to Gallatin's Report on Manufactures, the 

Industrial Consequences of the War of 1812 189 

total manufacturing output of the country in 1810 was Am SUM 

$121,000,000. In manufactures of wood, paper, j 
leather, tallow, spermaceti, whale oil, and molasses, we u. 4 *$-4ji. 

- enough to supply the domestic mar 

the outpi. works was sufficient within three 

thousand tons, while- the tobacco and hat manufacturers 

were exporting their -urplus stocks. According to Tench 

s more careful estimate, the annual value of our 

lactures, factory and domestic, was $198,000,000, 

of which iour tilths was produced in Pennsylvania, New 


The Effects of Peace. British statesmen began to 

realize that their < -Ifi with the con- 

sequent war, had rid them m rivalry n the sea, 

to develop domestic m res to th here 

ed States would soon be indeperv < ireat 

Hrita: declared, "We have ^. 

the seeds of a great event, nothing less tha 
the i .ind abst'l ;>endenc( Rdtec 

ish mai m. n A Parliamentary commissio 

reported: .irly appears that those manufatt 

ted ty tin- ii.- i c t 

cours- is country, ami that unless that intercourse 

be speedily restoml, the I nited States will be able to manu- 
lit fr their own consumpt 

< conclusion of peace threw open our ports once more 
to foreign trade, and English manufa* !T HhL 

regai lost markets, sent in shiploads of ( ^ u 

:K and woolens anl inm man \\hich 

offered on the most liberal terms to their agent 
country. The goods were taken on credit and disposed Hansard'* 
rd Broughan ie speculative J^^ri^ 

chara hi- tra.l. \vaswdl xxxm. 

worth while t<> incur a loss U|v>n the lir-t e.\]M>rtation. in 

.3 manu- 

ts in th Ahich the war had forced 

. to the natural course of thi 

ritain alone 

/ //A- 

/"////<>/ 5 



Stan wood, 


Am. State 




. 52, 

56, 452, 

454, 460. 

Am. State 

III, 168, 

amounted to $83,000,000, and those of 1816 came to $155,- 
000,000. American woolen mills closed down, and cnti < 
neurs like Scholfield were ruined. Tin- price of wool u-11 in 
the domestic market, tin- surplus wool dip was sent to Eng- 
land, and many of the costly merino -hccp were killed for 
mutton and tallow. The iron manufacturer- of the seaboard 
put out their fires. All but live of tin- forty plants of M<> r 
ris County, New Jersey, were prost rat ed . t he works were sold 
at auction, and the employees scattered. Some fun 
and forges were kept running by isolated farmers, hut the 
eastern industry as a whole was ruined. The iron foundrie- 
of Pittsburg were adequately protected by the expense of 
transporting these bulky goods across the mountain-. 
where lifty miles of land carriage cost as much as the ocean 
freight from Sweden ; but the bagging industry of Lexing- 
ton, Kentucky, was unable to cope with Knglish competi- 
tion, for imported cotton bagging flooded the country 
at prices far below the normal cost of production. 

The men who had invested their capital in the new- 
industries raised an outcry against this destructive com- 
petition. Forty memorials from as many infant industries 
and manufacturing centers were sent up to Congress in the 
session of 1816-1817. The cotton manufacturers of Massa- 
chusetts, Connecticut, and Pennsylvania petitioned for 
protection against the low-priced goods from England 
and India; the paper manufacturers and printers pro- 
tested against the competition of Holland and France; 
the sugar planters of Louisiana, the cordage manufacturer- 
I assachusetts, the hat makers of New York, the gun- 
smiths of Lancaster, Pennsylvania, and the proprietors 
of the hemp factories of Lexington, Kentucky, were no 
less insistent on protection. The merchants of \ew York 
City denounced the auctioneers and asked that a 10 per 
cent tax be levied on such sales. The Pittsburg me- 
morialists complained " that the manufacture of cottons, 
woolens, flint glass, and the finer article- of iron ha- lately 
-ed the most alarming depression. Some branches 
which have been several 3 ear- in operation have been 


destroyed or partially suspended; and others, of a more wife, 
recent growth, an: :hey were completely J!"" lro ' 

lc of importation has inundated aio ' 
oretgn goods. Some of the most valu- 
izens have been subject to enormous 
losses, and other bankruptcy and 

In t!i. '-s we have the knowledge 

labor-saving ma. Uerial, a: 

than in Britain, hut Town capital 

manufa 1 the <: 

ike a considerable time and heavy 
duties necessary for <>ur protection. We have beaten 
England out of our markets in hats, boots, and all manu- 
res of leather ; we arc \ hip- 
building ; these are all the u- -he hand-, where 
labor-saving mach s no aid; so that her -u[>eri- 
in manufactures, consist > the ex- 
ice and nicety of the lab*' machinery, t 
in the wages of la 

The diverse interests of shipowners and purchasers Am. sute 
were likewise represented. The merchants of Salem, 
Philadelphia, Baltimore, and Charleston urged 
ducti iterestsot 

Am. Sute 

against a pr <s, double 

utfht hring hih profit to the 

mam ..f raw materials, but 

tin -y im|KKcd a heavy tax on the outside public. 

The Tariff Act of 1816. Dallas, then Secretary of the Am. Sute 
Trea Congress (February i.\ 1816) 

a report on the revisior. \var tariff, in which he ad- in. 

vocated unresen'edly th< >n of domestic manu- 

f.icturt-N. he classified under three 1! Iu m 

head e firmly established whose prod 

were adequate to the needs of the as carriages, MC.V uter, 

wares, cordage, hat-, ti rearms, window glass, 
boots, shoes, and paper, on thi^e. the Secretary n 
mended .: v, on the ground that 

Industrial . .he 



Tariff Hist. 





competition among domestic producer! would soon lower 
prices. Second, UK- infant industries not yet surticit-ntly 
developed to supply tin- demand, but in a fair way to do 
so, such as cotton and woolen man, >arser 

grades, iron, tin, and brass manufactures. >pirits, ale. and 
beer; on these, protective duties were proposed in the 
belief that the ultimate advantages would more than com- 
pensate the consumer for the temporary advance in ; 
Third, industries in which this count r, il hea\ily 

handicapped by lack of machinery or >kilk-d laborers, 
such as high-grade cottons and wool. 
muslins, carj>ets, hosiery, hardware, cutlery, porcelain, 
ilint glass, etc.; on these, duties should be high or 1< 
the interests of the revenue might determine. Duties, 
he believed, should not be imposed on the raw materials 
of the manufacturers, especially in the cae of the ship- 
builders, "which latter interest \\\\\A be respected 
time when the equalization of duties on tonnage and mer- 
chandise will probably give ri>e to an interesting competi- 
tion between our own vessels and those of foreign nations." 
In the bill introduced by Lowndes of South Carolina, 
30 per cent ad valorem was proposed on commodities of 
the first class, 25 per cent on those of the second, while 
duties on the revenue list ranged from 7.5 per cent \ 
and 30 per cent. At the suggestion of Francis C. Lowell, 
coarse cottons were given a special form of protection in 
that a minimum valuation of twenty-five cents a 
was set upon all imported goods. The effect was to 
exclude the cheaper grades hitherto imported from India 
and, as the Salem memorial pointed out, to reduce the 
East India trade by half. The ironmasters secur. 
duties of forty-five cents per hundredweight on ham; 
and $1.50 per hundredweight on rolled iron, and from three 
cents to five cents a pound on tacks and nails, \vhile an ad 
valorem duty of 20 jx?r cent was levied on other iron manu- 
factures and on pig iron, the output of the farm fun 
The measure of protection secured by rolling mills and 
nail factories was at first conceded to be ample, but the 

Consequences of the W 

iisuffident to xhut out Swedish and English 
rts, and an increase was granted in IM.V 1 h. duty 

: , and that on pij? ents per hun- 

war duty on salt (twenty cents per 
bushel) was continued, although the domestic prod 
600,000 bushels per year, was far short of the demand, and 

thr annual ir i amour/' 00,000 bushels. It 

was urged that the saline springs of NV , 

soon supply the seaboard market if an 

uitc measure of j . were accorded. Specific 

cents and fifteen cents per gallon were laid 

on ale and beer in thr interest <>f t) .<$, but more 

especially to increase the demaiv barley, and hops 

as a solai lucers of those cereals. The ! 

* he war were but 
reduced, and the excess of 

i-d on spirits distilled from grain was maintained 
in the interest of corn growers. The rum interest, so 

::ient in the tariff debates of tin- first decad 
grcssional hi-t..:y, was less influential now. The war 
lolasses was cut r r Ballon 

was douMr tin- rate im(x>sed in 1789, and this tax on tlu-ir 
raw .material was protested in a ]K-titi*n M-nt up }-\- the 
rum ili-t: x Speaking : Am. Sute 

>se plants represen t 

of $1,000,000, an>! 'lie Hai:.iiin \\\--i 

deprecated a 

Hut a new a had arisen. The cane 

growers of Louisiana askn i i ut > l ' I6|> 

on molasses bu .ir as well. The planter> had built 

ninrlv <>;i< xpenseof $3,500,000, and 

$1,000,000 v tnd they 

grades of sugar were reduced on 

: at twi-lve cents a pound unti 

Clash of Sectional Interetta, T :he 

tii:ii f<>r Middle and Western 

194 Industrial History of the I 'uitcd 5 

. III. 


Phillips, n, 


II. Hi. III. 
Ch IV 

states. The manufacturers of New York. \. Jersey, 
and Pennsylv. :e supported by tl 

ucky, and Tennessee, whose wool, hemp, and ila\ 
brought better prices in a protected market, and 1>\ 
planters of Louisiana, who. handicapped by disadvat 
of soil and climate, could not compete with tin 
growers of Cuba and Jamaica unle protected by a tariff 
wall. In New Kn^land there- was a conflict of int< 
Conservative men were attached to the accustomed chan- 
nels of commerce, and these were menaced by the pro- 
tective policy. The effect of high duties was to dimini.-h 
the volume of trade, increase the cost of shipbuilding 
raise the price of raw materials for rum, cordage, and other 
established manufactures. The textile interests, on the 
other hand, favored high duties, and by 1820 Rhode Island 
and Connecticut had come over to the protectionist camp. 
Meantime, Southern statesmen had announced themselves 
squarely against protection. It had become evident that, 
spite of great natural advantages, cotton manufactures 
could not be prosecuted in the Southern states because 
of the inefficiency of slave labor. Import duties tended 
to enhance the price of all they bought and lower the price 
of everything they had to sell. The price of raw cotton 
had risen to twenty-nine and a half cents immediately after 
the Peace, but was soon to fall because of the discriminating 
duties levied by Parliament on American cotton. The 
British duty of 6 per cent ad valorem imposed in 
was raised to $7.25 per bale in 1831. Since our normal 
crop was more than sufficient to supply the don 
demand, the surplus must be exported to an unfriendly 
market. The price dropped from thirty-two cents per 
pound in 1818 to seventeen and a half rents in 1X20 and 
nine and a half cents in 1X27. Our import duty of t 
cents a pound levied in 1791 was continued until 1846, 
but it had ceased to have any effect. 

The Tariff Act of 1824 was carried by the vote- of the 
Middle and Western states. The >pecial advocate of 
protection was Henry Clay of Kentucky, " the fath< 

' >. H B 

/*</ Consfqutnca of tk* 1&12 19$ 

American system." The argument of Randolph in 
ilf of the consumer and that of Webster in behalf of 
Chipping interest could not avail against the influence 

>ear by the Eastern manufacturers and the Tariff. 
rn farmers. Increased duties were imposed on wool ] 
and woolens, hemp and cotton ^ggify -\ and iron 

It was intended that the duties on raw 11.1-55. 
matt-rials should in each case be offset by a compensating suarad. 
duty on the corresponding manufacture. The 25 per cent ' ^ x u 
rate on imported cottons was not increased, but the mini- 
mum valuation was raised fr 

t-nts, thus excluding higher grades of doth. Coarse 
:is were now manufactured in New England as cheaply 
the old country, and under the combined influence 
rap raw material an<! r 

production had diminished until >n manufacturers 

^'li>h prices. The goods from the 

Walt ham mill that had been sold for thirty cents a yard in 
1816 brought hut \ in 1819, thirteen cents 

in 1826, eight and a half in 1821; ents 

Domestic conijH-titio -educe prices 

\\ithin the protected area exactly as Hamilton and Dallas 
had foreseen. 

The Tariff Act of 1828. In 1824 Parliament repealed 
the imp. \\-OOl, and the price >f thi- 

raw material in thr i p{>ed from i*. t<- *\&. 

a pound. The English cost of production was corrcsj > 

aced, an<: in woolen manufacturers peti- fiocbof, 

r morer' Mas&i * 

la>t that i>- ires was the 

I policy of t Utl in this agitat \ 

.nufacturers held in Ho-t. the de- Boll. 

mands of the woolen intcre raw mate 409. 

wool 1 soap and olive oil, were 50 JXT cent dearer suarad. 

^li>h prices, and compensating protect t ! - ck 

be given their fmi>hcd prodi: e General C- 

passed favorable resol and all but 

one of the Bay State congressmen advocated a minimum 

196 / r of flu- r>. 

valuation clause in the woolen schedule. A nation;! 1 
vcntion was assembled at Harrislmrg. Pennsylvania, uhich 
urged the protection oi other industries, whilethe congres- 

.al committee on manufactures summoned bu 
men represent inn tin- different manulai luring inti-n 
testify as to the nature and degree of protection re- 

Politics played so large a part in the tariff legislation of 
1828 that the result was satisfactory to no section of the 
country except the Middle West. Duties on pig iron, 
wool, and hemp were raised to prohibitory rates, and 
llax was, for the first time, placed on the protected list. 
The compensating duties on iron manufactures, woolens, 
and cordage were not high enough to offset the im r 
cost of production. The rum distillers were out: 
by the raising of the import duty on molasses to ten cents 
a gallon and the withholding of the drawback previously 
allowed. The shipbuilders were jeopardized by heavy 
duties on chains and anchors, sail duck, and cordage, and 
the drawback on sail cluck purchased for tin \meri- 

can vessels was disallowed. These duties involved the 
addition of $6.25 per ton to the cost of every ship built 
in the United States. Serious as were the burdens im- 
posed on New England industries by this " tariff of abomi- 
nations," it bore even more heavily upon the South. 
The prohibitory duties on the coarse cottons and woolens 
with which the slaves were clothed, on sugar, salt, and iron 
manufactures, gave the planters no choice but to buy of do- 
mestic producers at prices averaging 40 per cent higher t han 
in foreign markets. The cotton crop of iS irarlv 

treble that of 1815, but the price in the 
was one half, in the English market one fourth, of that 
prevailing in the year after the war. The tariff wa 
Tit . _ k , mally protested as sectional legislation and t In- 

state Paper* unconstitutional by Georgia, South Carolina, Alabama, 
Virginia, and North Carolina in 1829, and an anti-protec- 
l ' on Convention was held at Augusta, Ge< In the 

108-213. same year a free-trade convention was held at Philadel- 

o owscoMfttcts o t/ts ll\ir if /<V/j 107 

phia and a memorial addressed to Congress, in which the 

In the Tariff Act of 1832 New England's interests Balk* 

f the rates on low-grade 

wool- .md bar iron, and molasses, and by a 

IM m <lut v on woolen doth* Flax was restored 

accustomed drawbacks on rum and 

sailcloth were again allowed. Some attempt was made 

>outh by a di. cent on leaf 

tobacco and by revival of the war ents a pound 

on indigo. eof 

either ppnhu t for the same reason that the price of co- 

had not been advanced by the three cents per pound tax. 

it y on salt was lowered from twenty cents to fifteen 

cents a bushel, hut Mine the velli ii ntsabushd, 

was still i > the cost icrs were 

< conciled. A states rights and : mverr 

hdd at Charleston in July, declared that the protective 
policy meant " a stead ion of 50 per cent on 

southern and a bounty of 50 per cent on north 

: ly enacted tariff was 
dedared null and void within the state of South Carol 

>teps were taken to prevent the collection of duties 
at the ports. The convention stated the tariff policy of 

i Carolina in unmistakable- 

of protected articles should be admitted free of all duty. 


Armed conflict was averted by concessions on both sides, 
The Compromise Tariff of 1833 gave "a lease of nine years 
to pr a were to be gradually 

scaled down by one tenth of the excess each year, until. 
in 1842. .1 hori/ r.ite of :o JHT rent ad valorem 'should 

Mined. In order that ndant revenues w 

be decreased, coffee, tea. spices, and linens were placed on 
>< 1<M. l>ut iw materials produced by 

the Western farmers were so listed. 

198 Jndnsti 


II. Hk 111. 





", S3S 

V, 415. 


Financial Difficulties 

The failure of Congress to recharter tin- national hank 
had greatly embarrassed the government in the linai 
of tin- war and deprived tin- country of it" mo>t reliable 
eurn million dollars in national bank notes 

withdrawn from circulation. The $7,000,000 in 
specie that had Urn contributed by fo: >lders 

. to Kurope, and the coin remaining in tin- 
country was thereafter withheld from circulation. Thi> 

:ln- opj>ortunity for which the private banks had 
tended. Hundreds of joint stock companio immediately 
secured charters from the state governments and proceeded 
to issue notes with no adequate pn>\ i-ion for redemption. 
The older and wealthier section- of the country had learned 
the lessons of depredation and undertook to avert the 
disasters consequent n excessive is>ue of credit money. 
The banks of Ma .ichusetts and of \ew York wci< 
stricted as to the proportion between is>ues and assets, 
and were managed on sound business principles. In tin- 
South and West, however, where- land was abundant but 
capital with which to develop its resources scarce, men 
still hankered for cheap money and plenty of it, and tin- 
state authorities and the bankers sympathized with this 
predilection. Between 1811 and 1816 the number of 
banks of issue was trebled, and the circulation increased 
from $45,000,000 to $100,000,000. But the purch 
power of the notes declined with increased issues. Tin- 
notes of the Washington and Baltimore banks were 22 
per cent below par. those of Philadelphia iS per cent, 
those York 10 per cent. Finally, in 1X14, all tin- 

banks outside of Massachusetts suspended specie pay- 
ment. From Maine to New Orleans, and from Phila- 
delphia -to Missouri, these " wild-cat " banks declined to 
redeem their notes, and the government it -ell could not 
require specie in payi axes. Business men 1 

to petition for a national bank of issue. 

The Second National Bank. The Secretary of the 

of t/tf ll'tr of l8/2 199 

Trea> 1 u|xm Congrest the necessity of recourse 

to a i tiankasti icans of enabling the guv- 


a stal roe the state banks to resume 

specie pa > Dallas' measure was deferred until 1816, Am. Suu 

ank was chartered upon substantially Hamilton's JJJJUl 

I -in ..ii a scale befit expansion of business n. ST; 

in th years' interval The capital stock wa> of which $7,000,000 was to be subscribed by 

.'>\ eminent and $28,000,000 by private parties. 
Thrtt iWription was to I* 

<>nds and one fourth in specie. The bank 

was authorized to issue - 1> the full amount 

and national bank currency, though not 

legal tender, was receivable at par in all payments to the 

i States Treasury. Five of th- directors 

were appointed by the I're>ident of the t'nited States, 

'<>ngress was empowered to order an inspection of the 
bank management \\h.-p.r\rr it uii un.i.-r rapidon. Thr 

1 was o|x-nc<l at rhihuicl; nuary. 1817, 

and tun ranches were established in ot! 

ness centers. 

successes of 1 bank were repeated 

aordinary demand for government 

bonds brought this paper up to par and relieved the 3S7 . 
Treasury .> embarrassi^ ational bank 

notes proved a welcome add rrency, especially 

in the South, where there was no specie and where the local 
Issues were thoroughly discredited : but the task of forcing 
the state banks back to a specie basis proved too great 
an ii organized with undue haste and financed 

with criminal toll-ram aess was mismanaged 

from the -tart Of the $7,000,000 specie required in 
charter, hut $2,000,000 was actually contributed, and of 
the $21,000,000 bond sub-. t $9,000,000 was 

good ii. ' Umd- il notes 

ng accepted in lieu of the >tipul 
payment Undeterred by the fact that a considerable 

2OO Industrial History cf the l'uit/ . v 

HI, 306-391. 


The Crisis. 

New V 

Ch. IX. 




('. nan!. 



portion of its capital stock was but dubious assets, the 
management awarded dividends to subscribers \ 
stock was not paid in, loaned freely and with inadequate 
security to the struggling stair hank-. discounted heavily 
the business paper presented by stockholders, and issued 
currency in excess of the normal financial needs of the 

Unwarranted accommodations and speculation br 
the in-titution to the verge of bankruptcy in iSiS, 
the Haiti more branch failed for $3,000,000. An ii, 
pit ion of its affairs was ordered by Congress and a vi 
ous reform prescribed. The original management was ob- 
liged to resign, Langdon Cheves of Charleston was el. 
president, and under his conservative administration the 
National Hank retrieved its financial standing. lint a 
reform administration could not avert the business crisis 
b yean of -peculation and wild-cat banking had en- 
gendered. The sudden contraction of credit, following 
upon a period of reckless financiering, jeopardized banks 
and business enterprises everywhere outside of New 

The Crisis of 1819. Not the banks only, but business 
men of all classes had been mortgaging the future beyond 
warrant. Manufacturers, encouraged by the prospc. 
adequate protection, enlarged their plants and doubled 
their output. Land companies invested borrowed n 
in property that could not be sold at a profit, and farmers 
mortgaged their lands for the wherewithal to make im- 
:its. Large sums were sunk in canals and post 
roads that could not pay dividends on the investment, 
much less make good the obligations incurred. Con- 
fidence in the resources of the country and its ultimate 
prosperity led men to anticipate industrial development 
by a generation and to risk too much upon the immediate 

The contraction of the currency from $110,000,000 in 
1816 to $65,000,000 in i8iq, and the refusal of the National 
Bank to discount any but well-secured paper, called a 

fits Wtf !2 2OI 

sudden halt in this road career of speculation. Hundred! 
of business enterprise* were prostrated, and thousand* of 

iddphia, Bait irg, w^.^ 

many lesser manufacturing and commercta! 

:ir! \\ith ilr-titutc men and women seeking 
k > fi II, and the value of real estate shrank to 

hinl the level of the speculative period. 
In the Mississippi Valley the speculative demand for 
money had been even greater than in the East. Virgin 
soil and limitless possibilities in the way of development Holme*, 
created a reckless sy financiering that brooked '" 

no restraint. serve as the medium of 

exchange came into the country through the New Orleans 
trade with th< dies and Mexico, but th< 

for capital with which to develop the country could only 
be met by credit agencies. In 1817-1818 forty banks 
of issue had been chartered in 1 <1 Tennessee 

and Ohio hastened to adopt the same alluring expedient Hint. 
The banks issued money without stint and loaned to 
speculators on easy terms. Prices rose, and though the ij>-ij6, 

\ T ew York and Phila- >& *. 
dclphia, the Mississippi Valley seemed to be in the heyday *"* 

National Bank 

presented an accumulation of notes for redemption ; the 
state banks, unable to meet reed 

to suspend specie payment, and the boom collapsed. To 
mitigate the general distress the state legislatures passed 

1 aws, staying proceedings against debtors, Kent ucky 
undertook to meet the situation by establishing the Bank 
<>f the Commonwealth, authorized to issue notes on the 
basis of the state revenues and to loan the same to needy 
persons on land security, but the remedy was worse than the 
disease. In 1822 the notes of the bank were worth fifty 
cents on a dollar, and its beneficiaries were owned The 
fanners lost their land and left the state by hundreds 
and thousands, and business mm were put to i 

2O2 huiusti tory of the I 'in: 

\mrru a. 



Ixrttrr* from 

expc- > for cash pay 

iescribed the -it nation as follows: " In th: 

;y of paper r. 
bilK an- in cin ulation of a half, a fourth, an eighth. 

a dollar. These small rat' 

dim Tin the ; 'heir nat : 

A considerable portion of the little specie to be SIM 
of what is called cut money, dollar- cut i ;mr, 

6ft, Tin 

'1 in ban, the 

country in the (haradcr of coin, l-hly 

ncndable were it not for the fraud- committed by 
those who dip the pieces in re-er\ in<j a part of the metal 
for thcm-elvc- ! in, writing nf Cincinnati : 

"There is here much trouble with paper money. The 
notes current in one part, are either refused, or taken at 
.t large discount, in another. Bank- that wen- creditable 

S a.u'o. have refused to redeem their paper in Bp 
or in notes of the t'ni ted States' Bank. . . . Tin- creation 
of thi> \ a-t ho-t of fabricators, and venders of base m< 
must form a memorable epoch in the history of the country. 
These craftsmen 1 ,-ed the money capital 

of the nation; and have, in a corresponding d- 
hanced the nominal value of property and labor. By 
lending, and otherwise emitting, their enu r ra\-inu r -. they 
contrived to mortgage and buy much of the property 
of their neighbors, and to appropriate to them -el \ -e- the 
labor of less moneyed citizens. Proceedinir in this manner, 
they cannot retain specie enough to redeem their bill-, 
admitting the gratuitous assumption that they were once 
possessed of it. They seem to have calculated that the 
\\hole of their paper would not return on them in one day. 

! quantities, however, of it have, on various occasi 
been t to cause them to suspend specie paym< 

' The money in circulation i- pu/./lii.. and 

more particularly era; for be-ide- the multiplicity 

of banks, and the diversity in supposed valu ' ion- 

are so frequent, and so great, that no man who hold- it 


in his (xttsession can be safe for a day. The merchant, 

ijurxtion, ' What sort of 

osing that a number of 

ire shown, and 01 i- are accepts not 

till tl 

additional priii- is uili: 

ipposed dofett in t the nv 

Land Speculation 

;>orary American- . ;ist and west 

mnics, were possess?!: 

.1 soils of the Mixxixs. l,arge tracts v 

to be had of the land office- es, and these cu> 

H.u^ht i i of means or inilu i retailed 

to w 

siderable profit. The sales were made CM l>ut the 

land was usually mortgaged t<> tin- full arum: >-7<>. 


The Emigrants. lessspeculati res j 

cf th ! .ut thrir America 

Koad was the usual mute acruss the 
..inks, although tlu- ! Road was 

age coaches, luggage, 

t less co- 


<stoga \\ rchased at Phila- be 

to IK- driven on for farm 

and all types of peoj 

i' way al< y road. -ii. 

fathrr may be seen dr waggon, and the women 

and . the rear. 97 . 

- along with them, and wrap 
lankets, and sleep on the t1>or> of taverns " 

2O4 I mint. 

, or 


Constqutncts </ /// War ,/ / V/J 2O$ 

ve cents per family. Other pioneers 
he when- purchase a wagon walked 

<-m along in a whedbanow. Many of the 

.ited down the Ohio carried an entire |V 
y and all their earthly possessions, household goods, 
tools, cattle, and horses. They landed where chance 


the Missour .table race migrat 

turc, by land hunger, by 

Id IKM.SIMI-. the opportunity base Birbeck. 

Dew land at a price and t their '" 

own account, unvexii: Mis, tithes, or {>oor-rates, 

seemed the of* -rid.. m reckoned 

on the costs and hazards of the journey thr i 
hardships ttu- heavy labor necessary to 

dear the forest, plow the untamed ><>il. build hoi>< 
barns, fences, and roads, tl mni- ^*" 

present malar: .receded far beyond anypossi- a g 7 . 

hility that tin fatherland could offer them; but many who 
had set out with the highest hopes were soon rned 

l.y illness or debt, and perished miserably, or made their 

tl way back to the seaboard. tint; thr 

hardihood that had led them t :luir fortunes to 

ig misrepresentations of a The Fiin* 

vikings of this migration were the K >ons 

ians and Carolinians who had followed Boonc 
across Cumberland Gap. Inured to hardship, impaiien* 

: hey bartered their chances 

in th in the wilderness, and 

pressed t.> the West, where land was still abundant and 

nd l.y t he restless energy of their ancestors, Birbeck.' 
the K .us were always on th 

'ow-room and deemed neighbors less desirable than 
freed rattle in the open. 

To a v ^'land observer this migratory hal>it seemed 

2O6 Industrial History of the L '>. 



VM' * from 
, }6< 



^ k 
^ 63. ' 




I, 297-209. 

'opardize everything which tin- normal man held dear. 
"The present occupants sell, pack up, depart. 
n . 1( . m Before they have gained the omlid, 

of their | new) neighbors, they hear of a better place, pack 
up and follow their precursors." II, '1 homes v 

purchased by men <t" mun .ind Coherer habit-. men 

who set about building substantial houses. planting 
orchards, organ i/ing schools and churches. and promoting 
transportation facilities that should convey their produce 
to market. These were the farmers and planters \\ho 
boatloads of wheat, bacon, whisky, and salt down 
to New Orleans and the Caribbean islands or dictate h< -d 
droves of cattle and hogs "back east" along the IVnn- 
sylvania Road to be fattened for the Philadelphia abattoir-. 
Even more staid and prosperous were the little (ierman 
communities located with careful foresight on the most 
fertile soil and within easy reach of a good waterway. 
Here industry and contentment, a predilection for the 
German tongue and for a specie currency, reproduced 
the conditions of the fatherland. Travelers such as 

Weld) Timoth >' Flint ' Michaux < ^ther and son, and 
Harriet Martineau all testify that the most promising 
of the pioneers were the Germans; next in capaci 
transforming the forest into productive farmland came the 
An g lo - Americans then the Scotch-Irish, and then the I 
nsn ' an d that the least likely to succeed in th- 
civilization were the men of French blood, whether the 
half Indian habitants of Vincennes and C'ahokia or the 
newly imported Parisians of Gallipolis. 


Speculative Investment 

OUR second war xrndcnce at an end, the n 

was blessed by thirty years of peace. I 
had well-nigh brought about the secessiot land 

in i,v rra of good f< The 

vexeti al and econonm . that had agitated 


and Madison, were solved to the satisi the new 

gene: ! statesmen: pr i<> manufactures, 

freedom of commerce, state regulation of slavery, banking, 
and internal improvements. Men were free at la 
c-ir energies t aerial development 

Manufactures, The series enacted 

during ami afu-r the war gave American n 
decades of protection, and ide good ux 

domestic markets. Under the stimulus of 

patent law, mechanical improvements were being 

luccd into every branch of n h in- 

creasing capital, labor-saving macl <1 the skillful 

well under way, and cotton, woolen, and iron manufactures 
were established on an assured basis. 

.issing of laborers in factories and workshops 
at the rapid growth of an urban p n. Wht: 

vania, a river 

Nvatcrpower or cheap transportation, the op- 

2O8 In dust 'ory of the I 'nil 






portunity was utilized to the utmost, and factory towns 

iptang into existence overnight In IMO th< only 

sixteen towns that boasted morr than three thousand in- 
habitants, and these were seaports such as Boston. 
York, Philadelphia, and Baltimore ; or. like Albany. I 
burg, New Orleans, and Richmond, owed their prosperity 
to some navigable river. The census of 1X40 reported 
forty-two town- having a population of more than three 
thousand, and fully half of these, MU h u Lowell and 
Lawrence, Massachusetts, Paterson and Newark. New 
Jersey, Syracuse, New York, and Reading, Pennsylvania. 
had their origin not in commerce but in manufacture-. 
The towns grew at the expense of the rural (list- 
especially in the North Atlantic states, when- all the good 
land had long since been taken up, and when cultivation 
was already yielding diminishing return-. The ambitious- 
young men sought employment in the cities, and tin- 
farmers' daughters flocked to the mill towns to earn at 
the spinning frame or power loom the wherewithal for 
a dowry or an education. 

Census, 1900, 
IX, ii. 





Cotton mf 

$4.8 14, 1 ; 7 



Woolen mf 

A A\\ 068 

14 528 1 66 

>Q <}()() <)()<) 

Iron mf. in tons . . 







The population of Eastern cities was further augmented 
by immigration. A period of industrial depression follow- 
ing close on the Napoleonic wars threw thousand- of 
European workmen out of employment, and tin- 
were crowded with destitute families, Knli-h. Iri-h. 
German, who gladly abandoned the impoverished old 
world to seek a living in America. In the decade from 

///</ ';</ ///f ' .',- 209 

i8ao ,000 aliens entered the ports of the United 

o the decade following this number was 
Agr -Throughout the North Atlantic section, 

.Iture was declining. The barren hill farms 
usachu* .i.nt, ami New York afforded but 

a meager reward to labor by comparison with the >.. 

\M Mill in the Mississippi Valley, and Mutte*. 
tisojuen energy and ambition 

to thr i iesof Illinois 

ami Indiana ami the alluvions of Oh; li .:::: Marti- Martiaaa. 

neau, who visited heard frequent ' * 

he back country th< 

of stx >tward; the 

immigration of laborer urope; and the ignorance 

sparse (country) popular 

In thr westward movement PUB** 

was no less apparmt. The he Carolinas was ]I 

exhauster! ulture ami the plantatk>ns 

ngcr rendered a n -plus. The younger sons 

h -lavc> un- 

i-rness of the Gulf states. The popula 
tbama and Missouri was doubled and that of Missis- 
>ilpi tnhlcd between the fifth ami the sixth census, the 
access of negroes being even more rapid than that of the 
.illuvial lands quickly repaid the labor 
sjxm ;:;>.-:; th< forests once cleared and the black 

sodden soil turned up t< is crops of cotton 

were produced. The p is staple was again rising 

in response to the augmented demands of Old ami x 
.iul. Thr n.ulir i><)int was reached in 1830, v. 
..I cotton M>M for -ix rents per pound, but t: 
rose t ami three fourths cents in 1833, and twenty 

er of sp< ran through the 

llion acres were planted to cotton before 
and the financial resources of the couir 

210 Iniin Y sf the l'nit<;/ St 

seriously taxed. The initial > be land was slight. 

seldom more than $5 an aero, and although Mocking the 
plantation with slaves and implement* involved ! 
outlays, the venture was almost ivrtain t lc remunc: 
The return from crop sales mounted into th. thou- 

sands annually, and good cotton lands hnm.nht $1500 per 
acre in the open market. A sugar plantation in Louisiana 
was a speculative investment, no le alluring and |>rolital)lf. 
Throughout the Gulf states all labor 1 to 

es, and the social order was a- uic as on the 

seaboard. The typical planter of the Mi i^>ippi low- 
lands counted his slaves by hundreds and hi 
thousands. In the uplands six hundred acre> and fifty 
slaves were a more economical unit, while in the western 
foothills of the Appalachians, where corn, \\heat. and 
C were the staple products, a farmer was content with 
a hundred acres and a dozen slaves, or might he reduced 
to the necessity of laboring with his own hands. 

The expansion of the South was determined by the spread 
of cotton culture. The denser population areas coincided 
with the " black belt" of rich calcareous loam that clothed 
the foothills of the Appalachians from Virginia south to 
the Gulf states and thence west across the bottom land- of 
the Mississippi into eastern Texas. As the plantations 
of the older states degenerated, new lands were claimed 
and cleared, and the region cultivated to cotton gradually 
extended westward to the confines of the Louinana Pur- 
chase. The Mexican boundary and the Missouri com- 
promise line imposed an arbitrary limit to the domain of 
King Cotton, but the great staple in its onward march 
showed small respect for political barriers. Cotton 
planters from the Gulf states began carrying their slaves 
across the border to the valley lands along the Sabine, 
Brazos, and Colorado rivers long before the annexation 
of Texas. 

Hammond, Cotton and Slavery. The cotton plantations offered 

111 ideal condition- for >lave labor. The hands could l>c 

massed under the eye of the overseer to a degree quite 


In >* and the Crisis <j 

impracticable in the growing of corn or wheat or hay. 

everal stages in the development of the plant, 

all the laborers on the place could be utilized. In hoeing, 

e-hatred" uncles "were as efficient as abl DC Bow, 

lintenancc was low, since the slave rations, 
corn and ; 1 sweet potatoes, might be grown on the 

place, and the slave quarters were usually built by slave 
carpenters out of lumber from the freshly cleared land. 
The actual money cxjx average more than 

$15 per year for each man, woman, or child unta- Olma4 

On the "dead lands" land, and ^^H 

had ceased to be profitable, but the i. Ot IV 
' furnished a ready mar he >urplus negroes 

of the border states. Prices rose as the demand increased. 

x> the best field hand brought but $200. In 
the price of an average hand was $250. The price rose "> 
to $500 in 1840, $1000 in 1850, and from $1400 to $2000 5 


When negroes brought es, the t- - DuBofa, 

import in defiance of law was too great to be withstood. 
Slave: cans, Boston 

re engaged in carrying kidnaped Afri- Cb 
cans to Brazil. umbers were Twentieth 

NnHiugled into the t'nited State-. 

Because of its low-grade labor, the South was comn. rty> v 

to agriculture. Manufacturin Ul not b 

manipulated by ignorant slaves, and the capital re<ji: 
for factories and foundries was absorbed by the e. 
of plan 1 The incentives to city buii 

urban population increased but slowly. 
^40 there were three times as many towns of 

Kind inhabitants in the North as in the South. 

ies boasting more than twenty thousand there were 

h and but five in the South Of these 

Baltimore, a; ille were hardly 

to be reckoned as Sou then 

.v Orleans owed its de t to j>eculiar 

tory of the Unit 

I. 336. 

51,52, 82-83. 

Flint, Rec- 
of Ten 



commercial advantages. The prosperity of Southern 
cities was largely conditioned nn tin- cotton U 
Charleston. Savannah. Hamburg. Nat (he/.. New ()rl 
were situated <>i harlwrs or navigable rivers that 
access to the plantations. Not factories and v, 
but cotton presses and warehouses filled the bu 
quarters. The entrepreneur- were factors who 
bought the cotton sent down river by the planter-, and 
sold on commission to the brokers of New York and 

Free Labor and Enterprise. In the free territory 
north of the Ohio River, the quarter section farm tilled 
by the owner and his sons wa- the typical enterprise, hut 
the prospects of the thrifty pioneer were no less brilliant. 
Miss Martineau was assured that " a settler cannot fail 
of success, if he takes good land, in a healthy situation, 
at the government price. If he bestows moderate pains 
on his lot, he may confidently reckon on its being worth 
at least double at the end of the year; much more if 
there are growing probabilities of a market." Cultivated 
land in Illinois was then selling at $30 or even $100 per 

The cotton and sugar plantations of the Gulf states 
furnished a steady and paying market for the food supplies 
and agricultural implements of which the farmers of the 
Ohio Valley and the iron masters of the Alleghanies 
quick to take advantage. The Mississippi and Ohio 
rivers formed the great highway that connected \orth 
and South. Scows and flatboats laden with llmir and salt 
meat, hogs and mules, plows and cotton gins, floated on 
the spring floods down the tributary stream-, the Alle- 
gheny and Monongahela, the Mu-kingum, Scioto, and 
Wabash, the Cumberland and th< CC, manned 

by young countrymen eager for adventure. At St. I. 

lean-, where these farmer mer- 
chants hoped to dispose of their stock in trade, the anchored 
craft lined the waterfront. Many a cargo was sold per- 
force at less than cost, and many a boa d on 

///./ '/// Crisis of 1837 213 

the snags and shoals of the treacherous rivers ; but there 
was always the chance of a lucky sale, and the South held 

..Men hopt-x t,, the man of pluck and resource. 

t a wagon load of 

roai the t* and, arrived at 

Wheeling, >et up -hop in his keel boat and 

traded from > : it as he floated down 

Hut the resour >neers soon began to 

manufacture t -elves. Whet Ohio K 

>hed power, mills were set up to furnish the goods nbc. 
that were too bui too breakable to be freighted 

across the mountains. At Beaver Creek (1821) were 
saw and gri>tmill>. fulling and carding mills, besides an 
iron furnace, a forge and a flajoeed y: .t Mays- ram, 

\ille there was a rope- walk and a glass factory; Paris 
boasted a .ti vied with Pitt>!mrn 

in UN output, ha\ I naiUuf Chevalier. 

e, a steam gristmill, v tan- 'M* 1 **- 

nery, a glass factory, white lead works, and a shipyard 
o steamers were I milt. 

trip on the Hudson (1807) 
hadrcvolutioni/ed : 'cam 

rapidly superseded oar and sail and greatly reduced 

and cost of water Iran \ line of chevalier, 

steambou' .-en established on the Hudson in iS<r 

n the ( ' :rom 

I'itt-l.uru' to \Y\v Orleans in 1812. Timothy Flint, who ram. 

down the Ohio in iSiS. estimated that the steamers J*"*^ 
had thrown ten thousand flatboats and keel boats out of ' 

In the t .ears of our national history the growth Me Muter. 

tx>th by natural increase and by immigration. ["' gj" 4 * 
had U-en j.henomenal The most rapid advances were xxm. 
made in the Mi-i-ippi Valley. The five thousand settlers 
north of the Ohio in i;(>o increased to three million in the 
years, and the i*>puKr ates south of 

had multiplied three hundred times in the same 

214 Industrial History of the United 5 



1000. I 










































The figures indicate a general westward movement of the 
population from the overcrowded districts of the Atlantic 
coast to the new lands of the North and South Central 
divisions. The westward movement still followed the river 
courses. The valleys of the Ohio, the Cumberland, and 
the Tennessee were first taken up, and by the fourth 
ade of the nineteenth century, Tennessee, Kentucky, and 
Ohio were fully occupied by a farming population. With 
occasional intervals, the lands alon^ both banks of the 
Mississippi River from Prairie du Chien to Xew Orleans 
had been made over to settlers, while population had crept 
up the Missouri River to its junction with Kansas, up the 
Arkansas River to Fort Smith, and up the Red River to 
the Mexican boundary. The navigable streams flowing 
to the Gulf of Mexico the Pearl, Tombigbee, Alabama, 
and Chattahoochee furnished the sole means of getting 
cotton to market, and so determined the course of settle- 
ment. Lakes Erie and Ontario were a no less important 
{>ortation medium to the wheat farmers of northern 
New York and Ohio. 

Internal Commerce. The period of isolation and 
enforced self-sufficiency was at an end. Southern planters 
could ship their cotton and sugar from their river wharves 
Orleans or Mobile where the season'- cmp was 
bought up by a factor and loaded on to a sea-going vessel 
for delivery at New York or Liverpool. The Maple crops 
were so profitable that no land or labor could be spared 

///./ /* ami tht Crisis of j8f? . 

for the growing of wheat and corn. Plantation supplies, 
tnd pork and whisky, were produced by the fanners 
alley and the Lake region and dispatched 
down the Mississippi to th< \vns for the use of 

.:ai planters. r..n..n. the "money crop" of 
South, brought in $1,000,000,000 in ' imt ihit dimifar, 

vast expended at home. It was distrib- ^ N n 

uted to the o- .re and shipmasters of tl. 

,reut Hrit.iin. to the farmers of the Western Coun- 
ronmongers of Pittsburg, to the manufac- 
turers of New England. The * -p enriched every 
section of the country except the cotton U-lt. It *.t >n DeBow I. 
motion a system of internal commerce which pBomoted the 445-446.' 
prosperity of the United States more than' any other single 

In the t \\enty years from 1815 to 1835, there was de- 
vclopcd a territorial division of labor that seemed to be 

rdinarily profitable to all the participants. The 
planters of the Gulf states from Georgia to Texas, with 
the exception of southern Louisiana, were absorbed ir. 

ng of the staple TS of the Middle 

West, from Tennessee to the Lakes, were engaged in grow- 
ing the grain, wool, and tobacco required by their m 
bore to the south and east New Enj: \v York, 

and Pennsylvania were content to manuf.u ture the cot- 
tons, woolens, and ir foe \\hich their water 
power and transportation facilities gave them distinct 
advantage, relying on the markets of the West and 
South. The south Atlantic states, unable to raise tobacco 
or cotton or cereals on their exhausted lands, found am- ch ; 
pie compensation in the growing demand for slaves in the 
new South beyond the Appalachians. Slaves were dr 

land to New Orleans from Virginia and Maryland 
he tens of thousands every year. 

Means of transportation were at hand in the vast Ch 
system of lakes and rivers that brought the remotest U 
sections of the great interior valley into communica 
with the sea. The Great Lakes were inland seas, while 

216 / History oj 

the Mississippi River and its tributaries furnished 16,674 
miles of steamboat navigation. Tin- tnnn !-< capac- 
ity of tin- Lake steamers was estimated at 100,000, 
and the population served at 3,000,000 (1846). The 
tonnage of tin- river strainers was reckoned to be 250,000 
and that of the sco\\> and tlatboats 300,000, and tin- popu- 
;i served as 6,576,000. The net nmm-y revenues fnm 
the . e of the interior, freight, and passengers 

amounted to $246,774,635 (1846), and tin number of sail< >r> 
and boatmen employed was at least 32,000. 

Direct communication brtween the Atlantic states and 
the interior was far more difficult. Kxcept by way of tin- 
divides cut by the Mohawk and Potomac rivers, post r 
were costly and freight charges prohibitive. The project 
of artificial waterways had been broached early in tin- 
century. In 1810 Peter Buell Porter, a Congressman from 
western New York, advocated the appropriation of some 
portion of the proceeds of the state land sales to the build- 
ing of a canal along the Mohawk to Buffalo and by 
of the Allegheny River to Pittsburg in order that the salt 
manufactured at Syracuse mirfit have a cheaper outlet. 
He urged that the price of this necessity would be reduced 
to consumers by fifty per cent. Salt was then selling at 
the works for twenty and thirty-five cents per bushel, 
while at Pittsburg it brought $2 per bushel because of the 
cost of carriage. Porter further urged the extension of 

r communication from Syracuse to Lake On tar i- 
Oswego River, and canal connection between I. 
and the Ohio via the Muskinguin River. Win at from the 
interior, then selling at fifty cents a bushel, would rise to 
Si if the cost of transportation to New York and 
Orleans was thus reduced. 

Internal Improvements. 

Canals. The post roads built at so much cost across 
the mountains and through the wilderness had gr< 

//// Expansion and is of 1837 2\j 

I not serve the purposes 

inc. Most West, furnitbed but uncertain 

.111.1 hazardous a\ trade, and it was of prime im- 

portat the feasible waterways should be connected 

by canals if the products of Western agriculture wese to 
reach Eastern markets. The first great < of this 

character was tin i; r ie Canal, undertaken and bitn 
to success .tin pul .lie-spirited citizens 

1825). This costly transport*- lidbctt. 

-ystem was carried from Albany to Buffalo through 

reak in the Alleghany Range made by the M. hawk 

It followed the Mohawk to Rome, and thence, 

ing the water of numerous small lakes and streams, 

d Lake 1 he Tonawanda and Niagara rivers. 

hotter r- the Oswego to Lake < was 

urged, but this plan would have diverted traffic to the St 

Lawrence and Montreal. The project of a canal around 

Niagara Falls failed to secure sir the same reason. 

Canal was miles 

in length and the cost of building averaged $20,000 per 

t the tolls of years' use amounted to 

0,000, an lian covered the initial e\i>enditure. 

paid running e\; tart, and 

e abundantly justified in t ture, 

but the secondary advantages to the >tate \\en far greater. 

Branch canals connected the main trunk with Ontario, 

Champlain, and Seneca lakes. htagc on a ton of 

goods by wagon road was $32 ndred miles; by 

canal the same distance cost $i per ton. The produce Waca 

of the lake region poured dou n this i haniu-1 to the sea, and 

h and population grew by leaps and bounds. The 

and Buffalo waxed thriv- 
became the leading 

. From (" > the s t -a via the 

ew Orleans was sixteen hundred miles, 

from ("hu-ai:.. t,. Montreal by way of the lakes and the St 

Lawrence measured the same distance, while the route to 

New York by the anal was but twelve hundred 

2l8 Industrial History of the L'nitui 

Great Am. 

U.S. Censua, 
1880. IV. 
Canals, 6-8. 


Letter XXI 

Coal I 
try, Ch. IV. 

miles. The problem proposed by Washington was solved. 
The industrial and political allegiance of the upper M i 
sippi Valley to the Atlantic seaboard was dett -mimed by 
the opening of this commercial highway between the two 

The Erie Canal threatened to deprive Philadelphia of 
the major part of her Western trade. To keep her hold on 
Pittsburg and the Ohio Valley, Pennsylvania undertook 
(1826) to construct a system of and portages from 

Philadelphia to Pittsburg, following the Sunjiuhanna, 
Juniata, Conemaugh. Ki>kimineti>. and Allegheny r 
Connection between the Delaware and the Sus<|uehanna 
was made by a horse railroad, while the summit of the 
mountain range between Hollidaysburg and Johnstown 
was crossed by the Alleghany Portage Railway, a series 
of inclined planes over which the boats, placed on wheeled 
cars, were drawn by stationary engines. This transporta- 
tion system was complete by 1834. In October of that 
year the keel boat, Hit and Miss, made the trip from the 
Lackawanna down the Susquehanna to Columbia, and up 
the canal to Hollidaysburg. There the owner expected 
to sell his boat and transport his goods by wagon road ; 
but boat and cargo were transferred to the incline railway 
and successfully freighted to the western division of the 
canal, thence the astonished navigator pursued the water 
route to Pittsburg and St. Louis. A rush of business 
poured along the new highway to the West, and the For 
Railway was overwhelmed with traffic so that the v, 
road was in constant requisition. Notwithstanding this 
disadvantage, the Pennsylvania Canal wafl a BOO 
rival of the Erie, and Philadelphia was able to hold a con- 
siderable portion of commerce with the interior. The 
total cost of this transportation system, $10,038,133, was 
met by the state of Pennsylvania. 

A promising venture for private transportation com- 
panies was offered in eastern Pennsylvania. The an- 
thracite coal district lay in the mountain valleys where 
rise the Susquehanna and Lackawanna, the Schuylkill, 

22O //. ; (\f the /";/. 

the Lehigh, and tl < i en. So bulky a commodity 

as coal could be transported only by \\atrr. None <>i the 

tlu- Su><|ueh. .- nishcd sufficient 

current, except during floods, i et to the 

ports. Within live year- of tlu- day \\hen " M<me ual " 
was successfully used in t!u- Philadelphia inn w<>n 
Canal was built (1828) conno ting the \Yyoming district 
with tlu- Delaware by :nals 

along the Leh. ivlkill. and Siixjiu-hanna wen- built 

about the >ame tii j.ut through the 1 

it an Canal ( 1834-1838) at a cost of $4,735,- 
353. The ship canal between Clu- i:ul I )el.-. 

bays was a more difficult enterprise, l>ecau>e it mu>t he 
cut through solid rock, and neither Delaware nor M 
land would assume the ta>L 1; as he^un under pr 
auspices, but in 1806-1807 the directors appealed to Con- 
gress for aid, arjjuing that such a waterway would i 

:uil importance. The appropriation recommended 
by Secretary Gallatin wa> not made until 1X25, when the 
I" ni ted States subscribed to $300,000 stock in the company. 
Tin- total cost was $3,730,230. 

A transportation system built through a populous section, 
or alo: .'J. a well-defined trade route. i> a ured from the 
start : but when a canal is carried through a thinly settled 
country, dividends must wait till business develops, and 
bondholders are likely to lose both interest and principal. 

te capital was therefore shy of such investmei, 
the in A \\<-t. but the >tate le<rislature> did not he 

'proj>riate considerable sums of public money in 
of canal projects. Thus the Miami Canal wa- built (1829) 
from Cincinnati to Dayton, and the Ohio Canal pn>\ 

inmunicatioii La] < I ' : < and the ( )hio 

M-I^' the route firM ted by \Ya-hiiiLM.. n. up 

the Cuyahoga and down th> 
and the Scioto. Such enterjirises proved U> 

lie resources of a pioneer community, and t 
appealed for national aid. Co: 
for the building of the Nat rough the We- 

/!* \ f^insion and the Crisis of i$J7 221 


authorities and by them applied to transportation projects. 

work improvements; the post roads from 

tfl to Sandusky, and from I~ikc Michigan to the 

re Unit from the proceeds of land grants, 

and, so aided, Ohio, in cooperation with Indiana, con- 

. abash and Erie Canal. The surplus rev< 
1 by the Federal government in 1837 was applied 
c Western states to transportation facilities. Antici- 
H great commercial gains, municipalities made extrava- 
gant contributions to canal stock, speculators subscribed 
far beyond their means, and bank credits were strained 
to the danger point in the zeal for industrial developn 
By l &37 $100,000,000 had been >unk in canals. The in- 
vestors found that they had buried their money in locks 
and waterworks, and that no adequate return could be ex- 
pected until the country had grown up to the transporta- 
tion system. 
The Southern states undertook far less in the way of writing of 

al improvements. Virginia in 1828 completed the 

Dismal Swamp Canal, an enterprise set on foot in Wash- 

ington's day, and began a waterway along the James K 

through the Gap of the Blue Ridge into the Great Valley. 

South Carolina opened commu from the Santee 

Charleston Harbor by a canal twenty-one miles 

igth, and New Orleans cut a ship channel between 

Lake Pontchartrain and the Mississippi, while the enter- 

it; citizens of Kentucky undertook a canal around the 

Falls of the Ohio. This last was only three miles in length, 

but wide and deep enough to admit boats of one hundred 


Washington's contention that Virginia should maintain Hulbcrt. 
direct communication with the West by way of the Potomac 

and the Monongahela had borne fruit in the Potomac cte. n. m. 

222 Industrial 1 list sty <>/ the L'nitcJ 

;>any, which spent $729,380 in forty years on imp 

>ed, but accomplished nothing of permanent 

utility. Tlu success of the Erie Canal determined the 

tO charter (1825) the Chesa id < )hi> ( '>mpany, 

authori/.ed to raise a c apital of $6,000,000 for the building 

:n Georgetov n t> Cumberland and thence by 

tumid adpon the range to the Youghiogheny. Thee ana 

not carried more than halt" this distance, but it- ultii 

\as $11,000,000, of which $7,000,000 was contributed 
by the state of Maryland, 81,500,000 by the terminal 
, and $1,000,000 by the Cnitcd Si < rnmcnt. 

The mute beyond Harper- Kerry was very difficult, ra: 

ge cost of construction to $59,618 per mile, and 
the promoters became discouraged. The progress of this 
enter; | delayed by the appearance of a dangerous 

rival, the steam railway. Baltimore gave her Mippnrt to 
the new transportation agency, and her citi/ens sub- 
scribed liberally to the stock of the Baltimore and Ohio 
Railroad. Railway and canal were built contemp 
neously along the same general route as far as Cumberland, 
and there the canal stopped; but the railroad easily 
mounted the divide and made it possible to carry freight 
and passengers directly to the Ohio and beyond. 

Railroads. Canal traffic was safe and cheap, but slow 
and liable to be interrupted by slack water, floods, or f: 
The Krie Canal, for example, freezes over in winter, and 
ation is stopped for from four to five month- in tin- 
year. A railroad can be built through mountainous country 
at one third the cost of a canal, and over height- to which 
cannot be conducted. A car run on wheels fitted 
to the iron track encounters less than a wago: 

a turnpike, less resistance than a boat in water. UlK 
The first railroads were built to supplement the canal 
system, as the ship railway from Hollidaysburg to J.hns- 

uch Chunk extension of the Lehi-jh C. 
the Delaware and Hudson Canal Company's tran 
from Carbondale to Honesdale. Car- loaded with 
and stone these iron track- by stationary 

i in 



//; "/ ami thf Crisis of /.Vjf 22 J 

engines, hone power, and even tails. The first locon . 
was imported inland by the Delaware and Hudson 

Company in is.>o, but it proved impracticable because the 
track h...l 1 1. -i UTM built for so heavy a weight 

management chose steam as the most practicable motor 

m Thumb," 

made the trial the thirteen mile^ of track bet\\ 

Baltimore and Kll .< hour. In the same 

autumn, several trips were ma i Carolina 

Railroad from Charleston M Hamburg. The "Best 
1 ran from MM, one miles an hour with 

loaded cars a: he speed 

attained was from th miles an hour. 

vving year th made a trial 

i the railroad then building up the Mohawk Val 

d the seventeen mile- .any to Schenec- 

tady in one hour. On the occasion of the formal opening x\ 
of this line, the legislators then assembled at Albany were 
-chenectady and there dined in state. One 
of the toasts voiced a daring prophecy. " The Buffalo 
Railroad, May we soon breakfast in I'ti. a. <iin 
Rochester, and sup with our friends on Lake 1 The 

\lbany to Buffalo by swiftest packet boat 
required at i three or four days. 

Speed is an all-important consideration in the trans- 
of passengers and perishable freight. Therefore 
publi -izens a r prising commui 

made haste to intro<Uue railroad connections and so to 
reap t \v transportation > The 

Baltimore and Ohio line was rapidly pu>h-d up the Poto- 
\ 'alley and was complete* 1 .berland in 1835, 

but the crossing of the Alleghany Range and connet 
with tin- Ohio was not attained till 1853. 

Railroads were intended origin ins- Unfacr. 

portation. The aim was t* the prod u s^s. 

terior to the ports, as 5> n the three Unes radiating 2* I 

from Bo and Providence, and 


< < > N ^ i i ; i < i i < \ 
Prom 1830 to I860 


///.. n and tk* Crisis of i8j? 22$ 

tie short lines running up cou: i New Haven, 

Bridgeport, and New York. Other roads were intended 

.tkc conn- -twccn water routes: witness the 

steam val lines across New 

Jersey, the Philadelphia, Wilmington and Baltimore, and 
thc(. Before the dose of the first 

decade of railroad building, a series of connecting lines 
1 the thousand miles between Portland and 

NYil miii^t :i Carolina, following the direction of 

Trail, the King's Path, and the early post 
roads, so that passengers and shippers might choose between 
railway transportation and the slower but cheaper steamers. 
Traffic on Lake Erie was supplemented by short lines 
built inl.i Sandusky, Toledo, at t before 

1840. decade connection between Lake Erie 

r was made by ti iati and San- 

dusky, and th Arbor Railway was carried 

through to Lake Michigan to avoid a long and circuitous 

Commercial Development 

The Coastwise Trade. With the development of the 
interior, domotic commerce increased in volume until it 
had become a far more important factor in the nation's 
prosperity than the transatlai vessels engaged 

in the co. ule multiplied year by year. The 

nage so enrolled was 516,086 in 1831, by 1840 the mi 
mark was reached, and this figure was doubled and trebled 
in the m y years. Steamships were introduced 

in the coasting MTV ice in 1823, when a steamer plied reg- 
ularly between Boston and th r, and a 
as soon after established between New York and the 
ts, Sharp o i between steam and 
sail t rage spec learners, 
night easily be surpassed by a schooner 
\\ith a i. AUK!, and fast-sailing barkentines and 

226 hi tin st> 



Dr Bow, 
II, 458. 

brigantines of enlarged h >1- : I to meet 

ival motor powi :. 1 laving no coal bill- to pay. the 
.-ailing vessels could offer lower rate- and BO manage to 
hold their own in ihr bulky freight traffic I'lu-y con- 
tinued to carry the major part of tin- coal, wood, and iron 
manufactures shipped from Northern port- in . 
for the cotton, sugar, and hard timber of the South; but 
passenger traffic wa- rapidly tr i to tin- -aferand 

more regular steamship lines. 

Commerce on the Great Lakes was marvel<m>Iy in- 
creased since the days when the open boat of the fur 
trader made its perilous way from Buffalo to Detroit and 
Michilimackinac. No sooner had the Erie Canal been fm- 
ni-hcd than a brisk trade developed along the American 
shores. Scores of brigs and schooner- were built at Buffalo 
and Erie to transport the wheat and lumber products of t h<- 
pioneer settlements to Eastern markets. Nine tenths of 
this traffic was between United States ports and thu- 
reserved to our own vessels. A little steamer < >f t hree hun- 
dred and thirty tons, ]\'tilk-in-thc-\\'iitcr. was launched at 
Buffalo in 1819. The venturesome pioneer was wn 
two years later, but her place was soon filled by regular 
lines of lake steamers. They were built stanch and broad 
to breast the winds and waves of these inland seas. The 
side wheel, customary as yet in ocean steamers, was found 
impracticable where canals and narrow channel- wire to 
be traversed, and Ericsson's screw propeller gradually 
Miper.-eded the original model. 

Our wonderful waterway to the heart of the continent 
was extended and improved by numerous canals. Thi 
Canadian government built the Welland Canal in 1833, 
and the state of Michigan built the locks at Sault Ste. 
Marie in 1855, while the dangerous passage through I 
des Morts was avoided by a canal from Lake Mid 
to Sturgeon Bay. Connection between Ch! 1 the 

as opened via the Des Plaines and the Illinois 
rivers in 1848, and the old trader'- route 1 
Bay and Prairie du Chien was made p: for lake 

//// '/</ /// ' ' /#?/ 227 

vessels by a canal across the portage between the Fox and 
Wisconsin rivers. By this means, a boat loaded at Buffalo 


'.11- "it) cargo. A steamer 

ulk and draught might, indeed, make the 
trip from H.dtimon- t Orleans by inland waters, ' 

< can swd tor a few hours in New 

The advantages for domestic commerce 
of safe and cheap transportation throughout this enor- 
mus circuit can hardly be overestimated 

Speculation and the Crisis 

In every branch of industry the craze for investi 
had gone far beyond safe limits. Men did not he 

xtravagant rates of inters mortgage 

future earning power in proportion to their most ardent 

anticipations. The capital sunk in \vhtv and 

mtation- and cotton mills, in canals 

and railroads and steamship lines, could not yield immediate 

nany a promising ise was swamped 

in irredeemable oblig.r 1 : by buoyant con- 

apparent 1> i Mr resources, the men 

IT scoffed at financial limitations ; and 

the . nee of ion and collapse through 

h the Ka>tern states had pass* . years before 

was ignored. fmunriers chafed at the restraints 

imj>oM-d >nal Bank and proposed the over- 

t hi- Ka>tern r that a free field 

nii-jhi be opened to the state banks of issue. 

Failure to Recharter. jn-tition for re- 

.il Bank came before Congress in 

the proposition was vigorously opposed. The bill 

it was vetoed by 
iuink had " failed 

in the great end of establishing a sound and uniform 

Jackson came fro- >see, where wildcat 

banking had gone to unprecedi ernes, and where 


GOBI <,!,,!*. 
1*1 Session, 






Letter- III 

tin- ruin wrought by the restrictive mea-ure- enforced 
by the Eastern financiers wa- keenly iVlt. II, ! i d( 
from this experience a profound di the National 

Bank as a dangerou- monopoly, a conviction that the 
of paper currency should be U-lt to Mate c:ntr.l. and tin- 
hope that all bank money might soon IK- superseded by 
specie. He believed that Mippre-ion of hank 
low the- twenty-dollar denomination would i . tin- 

use of gold and silver and place the curreiu yon a sound! 

The Debasement of the Coinage. Unfortunately tin- 
bimetallic system was altered for tin- worse ju>t at thi> 
juncture. The discovery of workable gold in the moun- 
tain- of Xorth Carolina and Georgia gave some reason to 
believe that the domestic production of this metal mi^ht 
supply the money needs of the country. The ratio of 

n to one fixed upon in 1792 was an overvaluation of 
silver, and gold coins had been withdrawn from circula- 
tion. In 1834 the ratio was altered to 15.98) to 
one. The amount of pure gold in the eal- 
from 247.5 grains to 232 grains with tin- elTect of del, 
the coinage by 6.26 per cent. Benton and the other sup- 
porters of the administration policy flattered themselves 
that they were restoring to circulation the " dollar of the 
fathers," the silver dollar of 371.25 grains proposed ly 
Hamilton; but under the new ratio silver was under- 
valued and disappeared from circulation. Gold bejran to 
be coined at the rate of three and four million doll. 
year, but not in sufficient quantities to meet the money 
demand. Some form of paper currency was inevitable. 
The Crisis of 1837. The war a-ain-t the National 
Bank was carried on with untlaizLiini: KttL I IK I 
dent's policy was supported not only by the chain 
of the state banks, but by the whole debtor \Vhen 

reposition for renewal came up attain in 1X4. it 

defeated by a large majority. The withdrawal of the 

National Hank DOtCS left a vacuum which the state banks 

not long in making L'<>"d. In th- :id South 

banks were chartered without let or hindrance. 'I he 

/Mii ftxpansior. ind th< Crisis of i8jj 229 

icreased : .uclrcd and t .e in 

1829 hundred ani >iht in 1837, with a 

acy was trebled, and bank 
loans were extended at an even more rapid rate. 
Speculation was outstripping the available capital of the 
Land jobbers borrowed freely of the banks 
in the expectation of speedy returns. Transport a 

inies were chartered by the score and undertook 
schemes far beyond the needs of traffic Imports exceeded 
export- fur the specula iod (1830-1837) by $140,- 

000,000. ImjM>rtiTs ran up 1>11U with their foreign agents 
editors to take st<* .mean enter- 

prises by way of payn < l . l 'irnulus of ad- 

. the inttun planter- nf the C.ulf States 

r acreage, mortgaging the growing crop for H 
y \\iihv. 

Mississippi VahY\ and south, was hea 

mortgaged to the Eastern bankers; the seaboard states 
were hut 

r of all was <1 States govt-rn- 

^-callcd cash payment for public lands had 
been recei i the notes of 

^tate banks as could assure specie redemption. The 
M racily su>taim-l. Many of the 
44 coot banks, organized since 1830, were loai 

irredeemable > .nd speculators, who prest-: 

the government land offices in defiance of the law, 
ami t! \vassoon glutted with thi> 

depreciated currency. In 1836 an was brought 

forward in the Senate reqi. bi be 

made in gold a to pass. Under direc- 

+ Treasury 

issued the famous specie circular .it land sales 

must U- < t>e of actual 

r where the lands 

lay. 1 hasers bank bills would still be 

received. ixrt of the specie circular was to dis- 

230 Industrial History of the United, 

Banks of 

Diary of 

Philip : 

1, 251-259. 


Sketches of 

credit the state hank notes, and j>; . ditors began 

to demand payment in coin 

When, in October, 1836, financial depression 
whelmed the English business world m obligations 

called in, and the banking houses of New York and 
Philadelphia became seriously embarrassed. Then tin- 
English cotton factories curtaik-d production, and the 
price of cotton fell. The New Orleans bank>. accustomed 
to loan freely on cotton securities, were tin- tirM to i 
down. Most of the cotton factors failed, and the Cotton 
Exchange was prostrated. The crisis was extended to tin 
Northern banks by a general failure of cereal crops in 1835 
and again in 1837. The farmers of the Middle and Western 
states had nothing to sell, and were as little able as tin- 
cotton planters to meet their obligations. Unable to 
realize upon their loans, the credit agencies collapsed like 
so many balloons. On May 10, 1837, the banks of 
York City suspended, drai^in.n down in their failure many 
business houses, and two hundred and fifty bankrupted > 
occurred within two months. Real estate depreciated in 
value $40,000,000, while twenty thousand men were thrown 
out of employment. The outraged public grew dangerous, 
and the militia was called in to protect the terrified iinaii 
The Philadelphia banks went next. The officers declared 
that deposits were sufficient for the needs of their own 
constituents, but that they could not be expected to pro- 
vide currency for the length of the Atlantic seaboard. Tin- 
panic spread like an epidemic, and six hundred and eight- 
een banks failed in this fatal year. Everywhere outside 
of New England the collapse was complete. A contempo- 
rary thus describes the crisis in Kentucky: "Spirit 
disappeared from circulation entirely, and the smaller 
coin was replaced by paper tickets, issued by cities, towns, 
and individuals, having a local currency, but worthless 
beyond the range of their immediate neighborhood . , . 
Bankruptcies multiplied in every direction. All public 
improvements were suspended; many states were unable 
to pay the interest of their respective debts, and Ken- 

I'jfpansion and tkt Crisis of 1837 231 

. wa> compelled to add 50 per cent to her direct tax 

her integrity In the latter pan of 1841, and in 

.car 184: npest so long suspended burst in 

The dockets of her courts 

groaned under the enormous load of lawsuits, and the 
most frightful sacrifices of property were incuned by 
forced sale> under e\e uti.-M 

Thus another period of reckless speculation was brought w 
to a sudden close. The discredited bank notes depreciated 
in value, and prices shrank to a hard money level. Factories 
and workshops, organized on a boom basis, dosed in ai 

Thousands > ves were 

discharged, and the iitie> \\ere crowded with tl 
ployed. All dt>w* curtailed expenditure, and the demand 
for goods was thi 

overstocked, r urs were slow to take risks, and 

capitalists da loan money on any terms. 

The country underwent live years of financial depress- i 

t was general -1 in 1838, but the re- 

hundred and ic banks 

dosed their door> the (..Mowing year, and ness 

world was not again in r until 1842. In the 

interval t! medium had been coir rom 

00,000 to $83,000,000. Import^ fell otT. and hence 

i. Sales of public lands shrank 

from $J4.S;;.ooo in i.Sj6 to $898,000 in 184.;. I hi ^harp 
reduction in r -ates go\- 

ment. whii-h had ( $37,000,000 in 

1837, under necessity of de >it of $42,900,000 

for the M\en years of the depression. Some wer 

were on t! of bankru; 

Mississippi and Florida repudiated their bonded in. 



U.S. Census, 
Debt, etc., 

Growth in Wealth and Population 

Tin. twenty years' interval between the ( 1837 

and that of 1857 witnessed the most remarkable industrial 
development yet achieved in the United States. The wealth 
of thecountrywasquadrupled in this "golden age. 1 ' K 

multiplied more rapidly than population. Our per capita 
wealth in iSOo was more than double that of 1840, more 
than three times that of 1790. At the beginning of the 
epoch, the accumulation of property was greatest in the 
older and more industrial sections of the Atlantic seaboard, 
but the agricultural communities of the Mississippi Valley 
made rapid gains and in the second decade doubled the 
amount of wealth per inhabitant. 






N. Cent. 



1850 .... 





$I8 7 


The growth of population, while not so phenomenal as 
durii "lonial and pioneer periods of our history, 

was still more rapid than in any Old World country. 


; <///</ A ffs 233 


1840-1850 . 




**> . 




ityward became marked after u.s 
1840. in \\ith a population of more 

than 8000, only 44 in 1840, was 141 in 1860. New York 

i;re\N in i hi- to 806,000. 

f reason- r easing concent ra! 

be sought in the gnmth ires ami 

- played an increasing part in < develop- 

ment because hincry ami steam 

transportation called for the massing of labor and capital 

I > s^in I'-UM i MI .s 






1850 . 



1860 . 






1000. Pop.. I. 

figures indicate a general westward movement of the Holme* 
popv; the overcrowded districts of the Atlantic ^ UI 

coast to the new lands of the \ tral 

The r< -ease in the \>rt: 

as compared with the Southern > :nmigra- U.S, 

iSOo there v . reign born in the J^ 

'.tte>. the greater part of whom had 

nine had !: Smith. 

pea> -rr- in ' decade and 914.000 in 

ih< xrond 'urhances combined with in- 

I NO ,000 Germans to migrate 

(re tktt.Ck. 

234 Industrial H <>/ tin- I'm; 




to America during this >anu- twenty years. By far the 

great. of the European immigrant-, came to the 

Northern states. The i hance to earn good wages in the 

! of New Kngland. in tin- mine- and foundries 

. hundred^ of thousand- of \ 
lish. Welsh, and Irish thither, and the native Ann 

.lives were being superseded by foreigner- ffhOM 
standard of living did not require so high a wage. The 
German immigrants usually pushed on into the ne\\ \\ . 
in search of government land. The Preemption A 
1841 finally assured to the squatter the privilege of buying 
the land he had brought under cultivation at the gn 
ment price of $1.25, no matter what the competitive value 
might be at the time the tract was offered for sale. ' 
payment might thus be postponed until the settler hac, 
earned the sum required. 

Few foreigners found their way to the Southern M 
Here the opportunity for -ning employment 

forestalled by slavery, and there was little free land except 
in the pine barrens. Moreover, the small farmer had in. 
chance in competition with the large-scale producer, and 
hence the average size of holdings was two and three times 
greater in the Southern states than in the Northern. 


1900, \ 

Kept. Am. 



N. An. 

N. ClNT. 




1850 . . 


1 1 2.6 


H3 -3 




The foreign element of the Southern tf derived 

from Africa, and the presence of these alien laborers de- 
barred European immigration. In the last decade li- 
the clandestine slave trad iold. 
Shiploads were landed in the Deluded bayous of the (iulf 
coast and Florida, even at the port of Mobile. It i- esti- 

r/Htnsii>9t and Revenue Tariffs 23$ 

mated that between 1808 and 1860 270,000 slaves were Dvbok 
smuggled into the United States. These fresh importa- *** * 
lions blood added to the number* but degraded 

On qti the slave population of the South during the 

Ahuli i: was receiving large acces- 




I \ I F 








I 1 





























M INV. -.>!;. ;>i 






Ingle estimates that in i ^o there were 2,500,000 slaves 
*>n the plantations of the South, of whom the number 
350,000 were employed in growing tobacco, rice 125,000, 
SUgar 150,000, hemp 00,000. The rei: 1,815,000 

in the cotton fields 

Mack belt " This vast army of cotton growers 

represents well -nigh the total increase in the -hvepopula- 

n the sixty year- >o to 1850. There were in 

mi States on the he Civil War ;.g>4,OOO 

slaves and 262,000 free negroe> together full\ 

thin! of the total {*>pul.iti.>n ,rn were then 

oo. hut urth of t The propor- 


Ch Mil. 

236 Industrial History of the Unit 


Slave States, 


< h \ i! 


h and 


>f slaves was declining in the border states, but increas- 
irther south \\hercelimatcand Maple crop- combined 
to rendrr thi- a highly profitable form of labor. Some 
three hundred and fifty thousand planters made up the 
slave-holding class. 'I ted not more than 5 

or 6 per cent of the white population, but they exercised 
ft dominating influence in the politics of the South and 
of the nation. The non-slaveholders of the slave states 
were the small farmers of the hill country and the poor 
whites, crackers, and sand lappers of the plains. For these 
there was no place in the industrial order. To won 
hire was to lose caste, and the opportunities for -elf -em- 
ployed labor were few and precarious. The poor white- 
managed to live off the produce of their inferior lands, 
or earned a comfortable salary as slave-overseers. 

Industrial Backwardness of the South 

The census tables indicate higher per capita wealth in 
the South Central than in the North Central section, but 
the comparison is misleading, for the slaves were reckoned 
as property. The estimate under this category for 1860 was 
$4,000,000,000, reducing the property of the South Cen- 
tral, invested in land and improvements thereon, to less 
than the Northern total. The wealth of the North Cen- 
tral section represented farms, factories, shipping and rail- 
roads, and was more evenly divided among a more numer- 
ous population. In matter of fact, the planters of the 
South, in spite of their immense output and magni: 
revenues, were being steadily impoverished. The money 
received for each season's crops was immediately 
patched to the upper Mississippi Valley for plant 
supplies, to the old South for new relays of slave- 

and and abroad for manufactures and luxuries of 
various sorts. Many of the estates were heavily mort- 
gaged, and f' There wa- little 
opportunity and less de-ire for the accumulation of capi- 
tal, and without capital manufactures and transportation 

,///</ A'r. !////< Lt tiffs 237 

facilities cannot be undertaken, and agriculture will be 
carried on in hand-to-mouth fashion. 






1860 . 









Agriculture. The planters south of Mason and Dixon's lade, 
had no share in the ar 

'' fllum |H i i Tillage by slave labor was necessarily 
. ami the methods extensive rather tl. 
uncry could not be used to advantage because the 
laborers were careless and unit. A cheap wooden 

plow drawn by mule or ox, a hoe, and a broadax 

lements with whit h the field hands could be 
ed. The contrast in the equipment of \ 
and Southern agriculti: < -nt in the census 

The money value of agricultural implements and machi 
averaged in 1850 thirt\ the Southern 

states, and seventy-seven in the Northern. In 1860 the 
rence was still greater, the average value per acre being 
forty-two cent> in the Souther four cerr 

D states. Conservation of the soil by the 
application of manures and fertilizers, rotation of crops, 
and the introduction of new seeds seemed so difficult that 
few planters undertook t ; i ted processes, 

The uxl was to abandon the cultivation of 

exhausted soils and clear new land. So usual was 
practice, that a field entirely free from stumps was thi> 
less fertile and actualh a lower price in the market 

than land cluttered with the debris of the forest The 
D of improved land was Stea- easing in 

country, while in the Sou- 
a> >lightly declining. 

238 Industrial History of the United 



5&, 57, 59- 


Diversification of crops was being continually urged by 
llu- friends of Southern agriculture, but it was well-nigb 

impossible to act .n >uch advice llu- cultivation of 

fruits, vegetables, and grain required more skill and in- 
telligence than tin- average plantation could furni-h. 
The planters of Louisiana were unable to r tin- 

slave rations, and were fain to purchase corn meal, pork, 
and salt beef from the thrifty farmer- north of tin- Ohio 
:. In the production of li I climatic 

advantages, the South did not keep pace with the country 
as a whole. Swine and mules tlouri>hed in the open and 
managed to fatten on acorns and standing fodder, but 
(attic and horses deteriorated for lack of can. 















1840 . . . 



1850 . . . 





1860 . . . 





Southern landowners found most money gain in grow- 
ing the great staples which could be planted and harv 
by gangs of slaves and by wholesale method-. Ti 

the principal crop of the northern tier of Southern 
states Maryland, Virginia. North Carolina. Tennessee, 
Kentucky, and Missouri. Rice was >till cultivated in th.- 
swamp lands of the South Carolina an< 1 ( . 
cotton on the uplands of the interior. The -out hern half 
of Louisiana was given over to sugar culture. 'Hie cultiva- 
tion of cotton was being pushed westward on to the black 
soils of northern and central Texas, for the exhai: 
of the Atlantic states bore diminishing harvests. K\en Un- 
fertile alluvial plains bordering on the Gulf ring 
out. The production of rice and sugar, crops confuv 

. <///</ A ffs 239 

.1 limited area, wa y falling off. The increase in 

tobacco was due to the extension of thi- culture to new 

soils in the West as well as in the South. The real gains 

it hern agriculture become apparent in the statistics 

This crop had doubled with c 

deca<i H4o. B< ^40 and 1860 the 

output \\.i- treMol 1 rop 

was grown on th- c seaboard; but \\ith the west- DeBow, 

cxtensio: n culture, the projn.rtions were re 

versed In i Sjo, 64.4 per cent, and in 1860, 77.5 per c 
of thi> staple was grown west o iins. South 

Carolina produced 28 per cent of the total crop in 1821, 
151* and 6.6 per < 

<>th Texas and Arkansas were 
in 1860 larger crops than the state that had 
begun the cultivation of cotton seventy years before. 

De Bow. 







South Carolina . 







Virginia - , 




Tennessee . 




North Carolina . 














4 ^ .; . .' > ) : 












Total . 




Manufactures. The economic relations that Great 

in had oiu e undertaken to establish by commercial 

< rn planters were nr\v fulfilling of their 

240 Industrial History of the T///A./ 

own accord. II .: all available capital 

and labor to prod uci i u rial of l-'.n'/li-h manu- 

factures. Their great staple supplied tlu- cotton factories 
of Old England with 1,247,000 hair- in 1X40. and 2,669,000 
De Bow. bales in 1860. In spite of many to foster ( 

I. "3. 177, culture in India, Egypt, and Ur ! -land was still 

dependent on tlu- American supply, but she found a 
pensating advantage in the increa-ing market for < heap 
cotton goods on the plantation- <>f tin- Southern BtatCS, 
The cotton manufacturer- of land were no less 

convcnienced by the ])redilertion of the South for agri- 
culture and her neglect of manufactui 

De Bow, In the first decade of the nineteenth century the ratio of 

, aii-223, manufactures to population was higher in the Southern 
s than in New England. For cotton manufacture 
the South had great natural advantages in that the raw 
material might be had direct from the gin without the cost 
of transportation and the factor's commission paid by 
Engli-h and by Northern mills. Water \ > abundant 

along the " fall line," and extensive deposits of coal o; 
fuel for steam power at low cost. Labor, too, was plenti- 
ful and cheap. Free white operatives might be had at 
DC Bow, less than one half the wage paid in the Northern fact 
IH, 33-36. Slaves could be hired at still lower rates, and they proved 
to have sufficient skill to operate the spinning mules and 
even the looms. The advantages of converting -laves 
to this use were thus stated by a Southern writer : " Cot- 
I ^31-232 * on K rowers > wno have owned slaves long, know they are 
capable of making efficient operatives; and when once 
learned, they are fixed, permanent, and valuable. This 
branch of the business furnishes profitable employment 
on cotton to a portion of the field force, which relieves the 
soil to that extent which is now wa-ti',. 
fatigue. It gives scope to all the \\ talent among 

the -laves, both males and females men in the machine 
shops, and women among the mules, th .d loom-." 

In spite of these 
cotton mills in the " black belt." Of the million a 

inffs 241 

ju.irter spindles operate 1 in \ ^ 4 o t U.S. 

hut i si, ooo belonged to ti ^o the South 

t spindles on c and a half 

in 1860, I'ut ..; .< V ; e and a quarter v. 

successful mills were spinning yarn 
looms or weaving the coarse doth that was to 
in theialit.. works of New England. Southern 
no less sluggish respect op- 

nanufactures. Massachusetts was 
.i- South each year $5,000,000 worth of shoes, l * wD ~ UvBL 
a good part of \\ hk h were made of hides tanned outside of 

The iron works iiia and Maryland had been 

colonial days far 

:i ct-ntur ho mountaineers who 

ran ore of the Appalachian Range held to the Swmnk. 
and wast. , \ o.uld 

not compete \\ith furnaces, and produced 

>ils and agri :\>r local 

trade. Ai 

Alabama in ,. the o u 

of cof -t, and fl ^outhern 

market. In the ni;inufacture of machinery tix> bulky to 
bear the cost of transports nade a great success; 

hut. in general, the iron manufactures of the North were 

.s before War. Vast deposit- 

grade bituminous coal reasured in the M>UI: 

Appalachians, hut the amount mined was inconsiderable 
iih the o :i states, 




' ft 



1860 . 


242 Imiitst, fory of t 


* -454. 


DC Bow, 
II, 187. 

Ch. IV. 

Railroads could be built through the seaboard and (lull 
- at half tin- cost of con-trm lion in tlu- North Atlantic 
section. The plain- and foothill- of thr South oi 
slight physical difficulties, timber and iron for laying the 
mi'jht be had along the line of route, while -lave 
labor cost only twenty <rtheless, Southern 

railroads were built but -lowly. The cherished project of 
connecting Charleston with the Mi-i^ippi River WB 

mplished until 1858. Mo port at ion 

facilities on the Southern roads were inferior and charges 
higher than on the Northern li 

Commerce. The fir-t American steamer to cross the 
Atlantic had sailed from Savannah, but no packet lines 
ran from Southern ports. The enormous export trade 
in cotton was carried on in Northern or Engli-h vessels. 
Between 1840 and 1860 Southern -hipyards built but ten 
per cent of the total output of the t'nited States, and their 
vessels were small side or stern wheelers intended for the 
coastwise and river trade. " The South, while prod'.. 
a majority of the exports, owned less than a fifth of the 
shipping of the Union, and brought to the country only 
one ninth of the imports." There was no lack of raw 
materials for shipbuilding. The South possessed inex- 
haustible forests of pine, oak, and locust, so that mast- and 
spars, turpentine and pitch, might be had for from one half 
to one tenth the price at New York. Newport, or Bo-ton. 
Hemp for cordage was abundant, and iron ore -uitabl. 
anchors and cable- e.xi-led in vast quantities. Sout! 
ers were, however, slow to develop new enter; ! the 

benefits of government action in behalf of shippi- 
merce, etc., accrued chiefly to the N<rtl ! 
from one to two dollars per ton on fi-hi t to 

the fishermen of Massachusetts and Maine, the former 
securing $7,926,000 and the latter $4,175,000 out of the 
$13,000,000 dispensed between 17^ the 

same reasons, the -iib-idi/.. d to 

Vorthern port-. Charleston -ub-cribed Mock for an 
Atlantic Steam Navigation Company, and Virginia pro- 

SHU* Tariff $ 243 

poicd a subsidy for the Franco- American line, but UMW 

and other projects came to naught. Despite their cotton 

trade, th<- ::.:...'> ol th- p < iiarleston and 

< Means, was dcclii . w York, Philadelphia, and 

.uiMiM- railroads and canals, had arrogated 

hemseJves the commerce of the Mississippi Valley. 

With the .If. rade, customs revenues fell off, and 

j>enditu! collection wa> 

l<>r internal ii the 

dredging and harbors, tin- building of break- 

waters, etc, were usually made at the uv : he more 

ng communities to the north of Mason and 

Before the end of this era of expansion the economic 
-jencc betwet : and South had become so 

ed as to give rise to considerable jealousy. Some- 
thing quite analogous to a nonimportation association was 
the business men of Mobile. A circular 
issued in the last decade before the war urged upon pa- 
ns that they patronize > BOW. 
ami discriminate against the products of the ri\al *e 

-h goods and commercial houses were to be preferred ' 
-c of the North. 

Territorial Expansion 

of the soil such as was practiced in the 
holding states could not long maintain a growing 
The younger and more en of the 

had been carrying their slave xts, 

where land might be oht vast tracts and where a soil 

iity enabled them to recoup their de- 
^ fortunes. By iS;c ericans outnumbered 

-h population, and the Mexican government be- 
came seri A-erned lot thi> rich province pass from 
trol \ ' oasures, e.g. the aboli- 
. the pr*>! f the importation of slaveai 
he denial of the right of settlement to free persons 

244 Industrial History of the T///A 7 ^ 


ry oP 
II 375-469. 

from tlu- I'nited States, were di-rrg;irded \\\ the invaders 
\\h> had -light respect for the Spanish authorities. Matters 
were brought to a cri-i> in 1,^5. when the invaders dec! 
the independence of Texas and set up an autonomous 
republic. Southern congressmen gladly utilized this 
opportunity to annex the revolted j and although 

the measure was vigorously opposed by Northern -tates- 
men, who deplored any extension of slave territory, t he- 
slave interest triumphed. During the enduing war two 
American armies marched through the heart of the enemy's 
country, capturing Chihuahua, Vera Cru/, and tlu- City 
of Mexico, and a third, the Army of the West, struck 
through the Northern provinces, taking possession of Santa 
F and San Diego. Nowhere was there any effective re- 
sistance, and in the treaty of Guadaloupe Hidalgo (1848), 
Mexico was forced to yield all the territory north of the 
Rio Grande and Gila rivers upon the payment of $15,000,- 
ooo indemnity. The \Vilmot Proviso, stipulating that 
slavery should be prohibited in all territory that might be 
acquired from Mexico, failed, and a vast area was opened 
up to the enterprise of slave owners. 

Upper California had long been coveted by certain 
Western senators who knew something of the rich resources 
of the country and the weakness of the Mexican rule. 
For twenty years a flourishing trade had been carried on 
between Boston and the Californian ports, San Diego, San 
Pedro, Santa Barbara, and Monterey, dry goods and 
groceries being exchanged for hides and tallow from tin 
cattle ranches. A few American merchants and sailor- 
had become domiciled at one or another of the coast towns, 
and they sent back to their friends gl ts of 

soil and climate and of the fortune* to le made in the un- 
exploited commercial and agricultural resources of the 
country. Moreover, trappers and Indian traders, and, 
latterly, a few emigrants, had found their way across the 
Sierras. There were some five thousand Americans set- 
tled in the province when war with M< ired, 
and they lent active aid to the cau>e of the I'nited St 

Expansion and Revfnn* Tariffs : 

Hardly had the annexation of California been ratified, HUufl. 
iggett and teaks of virgin gold in the 

u any that had taken 

place since the sixteenth century. A horde of adventurers, 

r the most pan, rushed to the El Dorado 

e Pacific Coast Gold to the amount of $5,000,000 

was taken from the placers of the Sacramento Valh- 

1848 by the five thousand men who were first on the 

id. During the next year fifty thousand people 

made their way to California. They came from all parts 

of the world: Sonorians and Chilians from the Spanish 

republics, Chinese and Malays from the Orient, Kanakas 

t he Sandwich Islands, " colony men istralia ; 

but the strength and sinew of the migration was from 

England, Germany, and the Eastern states. Some of the 

ners " br. tour months' voyage round the 

hers took advantage of the newly established 

steam-hip lines to Colon and San >. )>ut the 

penurious and foolhardy Westerners made their hazardous 

way along the Oregon Tra Bridger, and thence 

across the Great N a Desert and over the Sierra 

Range to the gold digging^ Once arrived in the land 

of gold, the treasure seekers scattered over the foothills 

Merced K ! rinity, searching the river 

wash ivrl that made men mad. Some 

t-turned home to iimM their easily 

wealth, hi; 1 1 not exceed 

$1000 a year, and barely sufficed to meet living and tra 

expenses. By official estimate $40,000,000 
gold was exported in 1849 and $50,000,000 in 1850, and m 

robable that one fourth th. .vere not reported 

to the government. The im production was 

reached in :< of the gold output was 

$65,000,000. Then it became apparent that the -urface 

igs were near -ted and that deep mining and 

leihods must be res* rnia 

was to remain the golden state, 

246 Indnst> sf ///< I'tiitt'if S 


I ; : iflfttil ' 



I',.u:> r. .ft, 
< r. BOB* 

Utah. At Sah m the edge of th. tain, 

tin- B Mormon settle: 

The MS had migrated from Council Bluff- in the 

summer of 1847, treking up tin- north bank of the I'latte 

i by what came to be known u tlu- Mormon Trail) 
to Fort Bridger, and thence a e Wasatch K 

he desert interior. The region had been thought 

less by all previous explorers, but the sage b 
plains proved highly fertile under irrigation. The settlers 
put up sawmills and gristmills, woolen factories and iron 
works, and were soon able to supply themselves with all 
the necessities of life. Few Mormons joined in the rush to 
California. They found a surer means of making money 
in providing food and transportation to the de-p 
gold seekers. In the winter of 1848-1849 there were five 
thousand people in Utah, and the leaders of the church 
had organized a system of emigration by which thoi sands 
of converts were brought every year from Great Britain, 
Germany, and Scandinavia to the new Zion beyond the 

Oregon. From the day when Astor's trading po-t 
abandoned to the Hudson's Bay Company, the Columbia 
River region had been coveted by Americans. Jedidiah 
Smith, Sublette, and other bold spirits trapped and traded 
in the disputed territory and brought their spoils to St. 
Louis ; but not till 1832 was there any attempt to establish 
trading posts. In that year Nathaniel J. Wyeth with 
a party of Massachusetts men followed the fur tra 
route to Fort Vancouver on the Columbia. Coin; 
of the rich possibilities of the country, Wyeth built i 
Hall on the Snake River and began a farm colony on an 
Wand at the junction of the Willamette and the Columbia. 
Four years later Dr. Man u- Whitman conducted a mi>- 
sionary expedition over the same route to the Walla Walla 
and proved the Oregon Trail practicable for women and 

ns. Reports of the beauty and fertility of the ! 
Columbia and Willamette valleys were sent back to the 
" states," and thousands of emigrants turned their faces 

ind Rfrmuf Tariffs 047 

In June. 1X43, a caravan of two hundred 
wagoi Vestport for the long overland journey. 

he beginning of a great migration. The characteristic 

i* a heavy four-wheeled cart with canvas cover, 

logos of an earlier day. The women 

hildren with provisions and camping kit were carried 

in the wagon- he men rode horseback or walked 

alongside. < mumpment was strictly guarded 

lest a foraging band of Indians capture the horses and oxen. 

i nan had represented to the Secretary of War 

i-siablishing military stations at con- 

.t |H)ints for the pur] MIST ling supplies and 

migrants, and in this same year Colonel 

nt wa> r. He found 

a wel rail and roadside camps the whole distance 

:ie edge xxl, 

for several miles along the [Bear] River, was dotted with wagons, collected in groups 

at different camps, wh< rr the -mokes were rising lazily 

the fires, around \\hirh ' i-n were occupied 

in prepai. children playing 

in the grass, and herd- e grazing about in the bot- 

had an air of <juiet set-urity and civilized com: 
that made a rare - ich a remote 

he autur >45 three thousand emigrants 

had follov ad to Orego; cs and cattle and 

plowc r from t and 

thieateneil th. the fur trade. I>r. McLough- 

>any at 1 

Yarn .is most hosp tiers, ho; 

that ' p the fertile region south of 

-:ibia and furnish grai: the 

Alaskan posts. But t! tans were not amu-i 

be governed by a trade monopoly, however benevol 
and they demanded a republican government under the 
prole* <*. The emigrant trains 

came steadily on, and Great Britain was finally forced 

248 Industrial History of the I A 

ider the land to the actual occupants. 
1. u rton Treaty (1846) secured tin- coast from the California 
boundary to the 4Qth parallel to the I 

The population of the Cordilleran and Pacific ( 
settlements amounted in 1860 to more than n\e hundred 
thousand, but the slave <\\ners were few. Tin 
of the settlers as well a- tlie nature uf climate and economic 
resources, rendered the region unsuited to slavery, i 

no use for slaves in the mines, on the sheep and cattle 
ranches, or in diversified agriculture. '1 
offered, on the contrary, many promising opportunities 
for free labor and self-employment. Irrigation required 
a degree of intelligence and a capacity for forethought 
that could only be found in the free landed proprietor. 

Through Routes to the West 

The westward movement of population necessitated 
improved transportation facilities. The three trans- 
Ail eghany canals had brought passengers and good- to 
the Ohio River and Lake Erie, but by slow and uncertain 
stages. The Baltimore and Ohio Railroad reached 
ward-flowing water at Wheeling in 1853. N 
had a roundabout connection with Buffalo by 184. 
the Hudson River (which was frozen over during tin- 
months) and a series of seven independent lines requiring 
several transfers. The New York and Krie. th 
tinuous line built across the state, reached Dunkirk on Lake 
in 1851, and there passengers and freight for points 
farther west wen rred to steamer-. Philadelphia 

had a much more difficult transportation problem than 
New York, since the height of the range in ania 

is four times as great as through the Mh,i The 

undertook to improve on the canal 
n. Hist established by building railways along the mor .-.ble 

P 5 ni of the route, thus reducii ne required. 

Vol. l!" ay ' T^ 6 DU ^ing of an all-rail route 'crtakcn by a pri- 

vate company in 1846, and the first train was run through 

: tiUil /.' 

Massachusetts had Unit th t road, the first canal, 

and the tir>t iron tramway (the three-mile line connecting 

uarrirs . h lideuater . hut her 

ns were slow to invest capital in the loconv 
When the Boston and Worcester road was finally opened, 

-t-n \\1. s railway system was 

purely local, I he Great Western 

vay was only with ditViculty and by state aid carried 
tuny (1841), and was operated, not in con- 
nection with the Boston and Worcester, hut under an in- 
dependent and antagonistic management. Kven when 
the two lines were finally consolidated into the B- -i..n and 
Albany Railroad (1866), the all-important t! 
to the West was not achieved. The Buffalo and Albany 
was financed from New York, and it- management was 
not concerned to promo t. .t crests of the i 


road cor. in the West began with the build- 

r in 1838. The 

legisl. iijan unl carry three railroads 

across the state fr and Munroe 

to Lake Michigan ; but the routes lay thr . :i forest, 

and traffic could not pay running expenses. The > 
management was inefficient, and th Jly 

(1850) made ( e compa: rthwest 

was wholly agricultural, towns were few and far bet\\< 

traffic was light. In 1*50 there was but one mile 
of track for eai h 10,000 of population in the states of 
Illiiv \\ Missouri, while Untor. 

New England boasted or. of railroad to 4000 

peop t decade a ma: railroads 

seized the new West. Roads were built in advance of 
traffic, and the mileage was rapidly increased. By 1860 
there was .1 mile of railroad for every 912 of the popu- 

ii in the upi>er Mississippi Valley. 

250 /Ht/Hstriii/ . ''''/v Cm:. 

CM U..U-. 


San born, 

Grant! ..f 





1'r II 
Appendix I. 


S. Census, 

Kept, on 
Roads. 12. 
289, 290. 

The Financing of the Roads. Thi- n>ull could hardK 
Urn achieved without national a Se\ eral 

of thr F.aMcrn read- had Urn built \\ilh Mate aid. M 
land had >ul>M ribed $3,ooo,ocx> to thr fttocfc of the Balti- 
andOhio; Ma ac h 84,000,000 to 

tin- ('.real WcMern : Penn-yh . < lina, and 

Georgia had undertaken to fmaiuv their initial r. 
The new \\V-tern states were hardly adi-(|uate to ' 
costly enterprises, and they appealed to Congress for aid. 
Following the precedent of land grants { canal pro 
Congress made over (1850) a tract of two million 
hundred thousand acres of public land to the >tate of 
Illinois to be used for the benefit of her Central Railway 
from Chicago to Cairo. Similar gran made to 

Florida and Alabama and Mississippi. The Mobile and 
Ohio, the lir>t through route from North to South, was 
likewise built with the proceeds of land grants. This line, 
together with the Mississippi Central, was carried thr 
to the Gulf in 1858-1859, the years immediately preceding 
the Civil War. 

These early railways were, with few exception-, built 
by joint stock companies chartered by the state legislat 
The charter was essential to the incorporation of the 
stockholders and to the securing of the right of way. 
Land for the laying of the track was usually given, both 
public and private owners regarding the advantage accru- 
ing from improved transportation as full compensation 
for such concessions. The older states imposed certain 
stipulations intended to guard the interests of the com- 
munities to be served. The rate of dividend was limited 
(to ten per cent in N .and, to tweh nt in 

Pennsylvania) by the provision that excels profits must be 
divided with the state or charges redu and 

passenger rates were to be held within a fixed maximum 
six, five, four, and three cent- a mile for pa>>ei;. 
three, and two cents -per ton mile on freight. The term 
he charter was limited, and in some cases, e.g. the 
Pennsylvania Central, the state reserved the right to pur- 

in J Revenue Tariffs 251 

chase and operate the roa \\c lapse of from fifteen i* Bow. 

years. In the Am decade of railway con- !I - ***- 
tlnn -A. i. i.uilt and equipped 2/64 miles at a 
cost of $100,000,000; in the second decade, 5045 miles 
$250,000,000; in the third decade, 20,109 
at a cost of $1,000,000,000. 

Little of this enormous expenditure could be expected 

:\g in an immediate return 1 densely populated 

and highly probative sections of the a railroad 

average rate of dividend was eight and one half |>er cent 
Hut parsely settled districts of the West and 

vestors must wait a score of years for their 
returns and run the risk of rinding their >tock valueless 
in the end. 

To the community at large the railroad was, in thi> initial 

1. an unmixed benefit. (\n-tn; rated a 

demand for rails a it proved a boon 

to the forges and hine 

skilled and i;: >ortati<>n \\ 

meant enhanced \> crops and lands all along the 

i the road. It halved the cost and quartered the 
time :nity for 

travel within reach of people of m.nlerate means. The 
building of railroads meant, too, the extension of the postal 

B and the cheapo ;>ostage. The govern: 

Was able to reduce the charge :-m ton. 

e, and f JUT letter to a uniform rate 

of three - 

The Electric Telegraph. Hand in hand with the ex- Bym. 
ten.M 1 roads \v munication by ** m 

telegr .r x-nding of verbal messages along an elec- 

had been renderetl j)racticablc by ^ lorse, 

it it was long before business men were convinced 
that this was a pr igrcss ap- ^iJji 

:iated $30,000 tnr the building of a line from Wash- 
i t<> Baltimore. Th >g year a line was run Ch. 

252 1>. <>/ the I'll \s 

from NY to Philadelphia by a private company, 

and the system \va> >oon i ended to Wilmii 

and Bah i 'ounce lions between New Y 

Boston, New York and Albany, Albany and i ,\ere 

made in 1846-1847. In 1848 l null built a 

graph line from N to Cleveland, Toledo, Detroit, 

Chicago, and Milwaukee. In the same year a line 
run from Washington to New Orlean.-, connecting tin 
board cities. 

The installation of a telegraph lih : -impler and 

cheaper enterprise than the building of a railroad, and 
the electric wires overspread the eastern half of the United 
States with marvelous rapidity. Communication with 
the Pacific Coast was a much more difficult proposition. 
From 1852 to 1860 the overland mails were carried by the 
famous Pony Express a relay system of rapid riders 
via the Salt Lake Trail. Encouraged by the prospect of 
a subsidy of $40,000 per year from the United States gov- 
ernment, the Western Union Company carried a telegraph 
line across the Cordilleran Range in 1861. 

Express Companies. It was a Massachusetts man, 
William F. Harnsden, who inaugurated the business of 
transporting valuable freight under private guard. He 
began carrying packages between New York and Boston 
(1839) in his own valise, delivering the goods in person to 
the consignees. The trip was made three times a week, 
by rail to Providence and thence by steamer York ; 

but the business developed rapidly and he soon arranged for 
an express car and a special cabin on the Stonington Steam- 
ship Line. An office was opened in New York and another 
in Philadelphia, and a Hudson River service 
with a branch nflice at Albany (1841). Henry Wells, tin- 
agent at Albany, proposed to extend the Buffalo, 
but to Harnsden this seemed too hazardous a venture, 
and the western business was organi/ed by an independent 
company. The Albany and Buffalo I \pn >\ered the 
distance by railroad and Mage in four nights and three days, 
the packages being packed in one trunk and intrust- 

// Expansion and Revenue Tariffs 253 

Wells' personal supervision. In 1845 Weils and Fargo 
started the Western Express to Cincinnati, Chicago, 

. 1 :, ... 

slutfrs r.ui in .i.U UK Oi nflfMdl .ml .irrir.l thoOHadl 

migrants and thrir outfits into the frontier settlements. 

The charge from New York to Buffalo was $4 per hundred- 

weight, to Detroit $6, and to St Louis $8, an excess of $10 

being added i r service. Letters were carried for 

. the United States post-office was still charg- 

ing twenty-five, and the government would have been 

letter carrying business throughout the 

express company's ten tin- timely rcdu< 

in the price of stamps. Money also was transported so 

securely that the rate of exchange between New York 

( 'hicago fell from 3 per cent nere cost of trans- 

Meantime Harnsden, ambitious to extend his special 
delivery systt .rope, had made arrangements with 

the Enoch Train Line of packet ships to accommodate 
his messengers and their charge and established offices in 
and Paris. Not goods only, but pas- 
sengers, were intrusted to the care of the c 

Cements of cheap and safe transportation from I 

pool to New York, Buffalo, and Chicago were posted in all 

the principal towns of Gre. . and passenger agents 

sent through Kuropc to solicit patronage. It was 

isden's ambition that every immigrant arriving in 

New York or Boston should be consigned to his express 

company, and he secured control of the hulk of the steerage 

accommodations. Fully one hundred thousand people were 

:ht over to America by this agency in the first five years 

- existence. After Harnsden's death (1845) the com- 

pany purchased a line of steamships to run across the 

Atlantic, and another for the coast set . at 

Savannah, Mobile, New Orleans, and Gal >ut these 

<l ill-advised. The management got 
.litlUultics and was forced to merg< rests 

\vii)i tin* newly organized Adams Exprfflft Company ( T 


7 of the Unitl 

Bodes. II. 

\I. VII 

Bishop II. 


Tariff I 
of the ' 
Dewey, 237- 
239, 200- 252, 


In 1852 Wells and Fargo sold out to thr American Ex- 
press Company and tran>fcrred their cnterpri-e to Cali- 
fornia. Goods consigned to them \ < d from New 
York to ^ ^ via Panama at a charge of forty 
per pound. A messenger ser\i ined 
with every mining camp in the gold du>! 
lected from the diggi;. Iran-ported direct to New 
York and London. The Wells Fargo Express Com] 

ved $56,000,000 in gold in 1857, of which sum only 
$9,000,000 was billed to the Atlantic >tates. Letter^ and 
camp supplies Wen dispatched to the miner- by the 
trusty messengers, who often furni>hcd the only regular 
means of communication with the civili/ed world. When 
the Nevada silver deposits were opened up, Wells Fargo 
built a stage road over the mountains to Virginia City, on 
which six to eight coaches a day were kept busy conveying 
passengers up to the mines and bullion down. An oxer- 
land stage route via Santa Fe was started in 1858, making 
a run of twenty-five days between St. Louis and San I)i 
The Overland Stage line via Salt Lake was taken over in 
1865, and thenceforward Wells Fargo dominated the 
press traffic of the Cordilleran region. 

Influence of Revenue Tariffs 

This period of industrial expansion was coincident with 
a period of low import duties. The gradual reduction 
of the tariff provided for in the compromise of 1833 had 
been consistently carried out, and the horizontal <cale of 
20 per cent was reached in 1842. This minimum tariff 
was in operation but two months (July and August), and 
then the advocates of protection secured a brief lease of 
power. With a view to making political capital out of 
benefits conferred, the Whig majority in Congress enacted 
a law imposing heavy duties on salt, glass, iron, cotton, 
woolen, and silk manufactures, indu-1; ented in 

New England and the Middle states. '! 
different to the measure, the South was distinctly h< 

nd Rev**** Tariffs 255 

ami the un.juulilu-.l I > -IS-.-K r.itii \ut'ry of 1-44 0NTC tl:- 

In his annual 
cr, Secretary of 

lonstrated that the prevailing customs 
im|xcd a tax of $81,000,000 upon consumers in the 5 
way of enhanced prices, u hiU- they brought to the govern- 
ment a revenue of only $27,000,000. He proposed that 
t.ini! l.v>Lt;..ii *hould IK- determined t>\ financial con- 111 
siderations solely, and that tin- in-.jM.rt duties should 
be laid in accordance with sou 

Rates should be fixed at the point - t he- 

maximum rt-turn over and above the cost sunwood. 

i being a minor consideration Ili-hdutu-i 

i posed on luxuries, but the raw materials of 
manufacture and the necessities of life should be admitted 
under low duties or placed on the fn < he argument the Tarifi, 

to manufactures insured high wages to 
labor, Walker declared to be delusive. Wages had 
risen under the Whig tariff, but the cost of living had 
certainly been advanced. '1 merican syst 

taxed twenty million people four hundred 

thousand operatives, whose opportunity for emj 
was dearly bought, and of isand manufacturers, 

vere reaping a higher rate of profit than any other 

Wai .cd that the retkution of our import duties 

on manufactures would lead to the repeal 01 .-lish 

Corn Laws and the opening of our agri- 

cultural produ al trade thus engendered 

would greatly benefit our fanners and planters, whose 
crops of wheat and cotton had outgrown the cap 
of the home market, and our merchants, who must profit 
from the augmentation of commerce. In the del 
the Democratic tariff hill, the antagonism betv 

and agricultural sections of the country 
became evident. Reduction of the was 

opposed by New England and it states, but 

ners and planters of the West and South 

256 Industrial History <>J / 

of Brit. 

Ch. IV. 
pand to 

C. 22. 

De Bow, 


In the Walker Tariff (July, 1846) imports were classed 
under four principal categories. In Schedule A 
listed injurious luxuries, such as absinthe, brandy, and all 
other liquors and spirits. On these a revenue duty <>i 
100 per cent was levied. Schedule H c.>mprisrl other 
less obnoxious luxuries. >mh a- nut-, ipfcet, \\eetmeats, 
Cigars, snuff, and manufactured tobacco. Such import- 
paid a high revenue duty of 40 per cent. Si lied.. 
covered with a 30 per cent import duty the industries that 
might reasonably demand protection. >ueh u pig iron and 
iron manufactures, wool and manufactures of wool, ready- 
made clothing of all descriptions, manufactures of leather, 
paper, wood, glass, molasses, and sugar. In Schedule 1) 
classed the industries now fully established, sue h is low- 
grade cottons, woolens, and silks. In general the ; 
rials of manufacture paid but 15 per cent, and the three 
cents per pound duty on raw cotton was finally abandoned 
as " inoperative and delusive." There was a long free li>t. 
Salt for the first time in our national history was admitted 
duty free ; tea and coffee, the luxuries of the poor, 
left untaxed ; the interests of the farmers were looked after 
in a tax of 30 per cent on hemp and leaf tobacco, on cheese, 
vegetables, etc. ; the interests of the cotton planters, more 
than half of whose product was then being exported to 
England, were furthered by a drawback of half the duty 
on cotton bagging when used for wrapping bales sent to 
the foreign market. 

The repeal of British duties on foodstuffs, anticipated 
in Walker's report, was already being debated by Parlia- 
ment. An act of June 26, 1846, reduced the tax on wheat . 
barley, oats, rye, beans, and Indian corn to a mere nominal 
rate. The year following the dutie ded, and 

they were soon abrogated altogether. Tin- bee Hri 
rapidly extended, until by 1849 a11 ()Ur agricultural prod- 
ucts, except tobacco, were admitted to England free of 
duty, even when carried in American bottoms. Our ex- 
ports of wheat rose immediately from 840,000 bushel- in 
1845 to 17,273,000 in 1847; our exports of wheat flour 

$ Tariffs 257 

,5,000 IwrrrN in i.v ; 

* rose with tl ic demand, and the American 

.IT reaped a rich harvest from the necesritkt of the Irish 

peasa .'land's population had outgrown the normal 

a permanent market. The total value '-reals ex- 

il in 1849 ammmtt-il to $;;. 5.11*4651 and this phenom- 

enal showing was maintained in later years. The balance 

ivor, since Great Britain was obliged 

to pay for these extraordinary receipts in gold and silver. 


Of TH1 





In his report of December, 1846, the Secretary of 

Trea .ted thus on the effect of six month-' 

operation of the Democratic Tariff. " We are beginning Cong. Glob* 

to realize the benefits <> By free in- 

lange of commodities the foreign market is opened 

to our agricultural pr.Hliuts. our tonnage and commerce 

.-im-nti: xports enlarged, and the 

\changes are : and specie is 

. it ry was never more 

prosperous and we h.. oyed such large and 

258 Iininstritil 7//.v/ ;r c/ t/; ( I'niud .SV. 

profitable markets for all our pndurt>. Thi- i- not the 
result of an inllatcd currency, | ual increase of 

wealth and business. \\hilc agriculture, commerce, and 
navigation, released from <>IHTII> iion>, 

are thus improved and invigorated, inanufactures are not 
depressed. The large pr< manufai turer> may be 

in some cases somewhat diminished, hut that branch of 
industry, now reposing more on it> own skill and resources, 
is still prosperous and pmgre>>i\e. \( -\\ manufactories 
are being erected throughout the country, and -till yield 
a greater profit in most cases than capital invented in 
other pursuits." 

Stanwood, The Tariff of 1857. The low taritl held for ten years, 

11,109-126. an( j^ financially at least, it was a marked success. In 
1854-1856 the revenues from customs exceeded the normal 
expenditure of the government. Secretary Walker ad- 
vi.-ed a general reduction of import duties in order to 
" reduce the surplus revenue and the constant influx 
of specie into the vaults of the treasury." The Tari 
passed in 1857 cut down the rates on Schedules A and 
B to 30 per cent, while duties on the protected products 
represented in Schedule C were reduced to 24 per cent. 
The 25 per cent rate of Schedule I ) was reduced to 19 per 
cent, but manufacturers received adequate compensation in 
the reduction of the tax on their imported raw materials. 
For example, the duties on pig and bar iron and hemp wen- 
reduced from 30 to 24 per cent, that on wool from 30 to 8 
per cent; flax and dyestuffs were admitted free. This 
abatement of protection to their special interests called 
out strong opposition in the Middle and Western 
but the Southern vot' en for the reduced rates. 

The Infant Industries come of Age. Govern: 
support once withdrawn, the protected industries proved 
rous enough to stand alone. The growth of popula- 
tion meant an increased demand sufficient to absorb both 
the domestic product and the imported goods. Ocean 
in most cases a sufficient handicap on the 
foreign manufacturer. 


iffs 259 

ry nourished, for, though imporUtioos 


held their full share of ihc m.r ri forced 

i to abandon the old method of hami 

1 by charcoal, and to adopt the cheo|>cr fuel, 
coal, and the less expensive process of puddling and rolling. 

ju\ta|H. and l.ituininous coal in 

western Alleghanies, coupled with improved transporta- 

K.IM- the iVnn-xlxa: 

advantages fu! 

As the dome-: from $85 per t . . $58 

in i^'. . freights became an increasingly effective de- 
terrent <>n importations. 

Cotton manufactures were also <: -during this 

period of low duties. n> multiplied un* 

can machinery was fully equal t :i>h.and' 

labor proved more ecoi h 1 1 ttrr 

is more efficient . : v as cheaj 

the United States marl . e in cost of trans- 

portation, amount . i pound. 

on goods was developing, not only in North 
and Smith \imrku, but in the Orient. Our exports of 
cotton goods rose from $3,000,000 per year in 1838 to 
$11,000,000 in 1860. The number of spindles operated in 

' nit i-d States doubled, and our consumption of raw 
cott : in the s.i -land was 

still ' im|M>rtant in > advantages 

in the way of water power and -killed labor enabling 

Vankee entrepreneur to produce the goods at low cost 

1 - i! 

1 " 


Tariff lit*, 


*.<N>. Manu- 

s wr.. H tUtxsorConoM 



'' ^ -'' 

260 Industrial H 


T.miT Hist. 
of the 

Bishop, n. 




h lix. 

Btt ft H. 




U.S. Census, 

tures, lix- 

/poo, DC, 

U.S. Census, 

/*6o, Manu- 

The woolen manufacturers labored under a spi 
advantage in that domestic wool was inadequate both in 
quantity and quality. The retention of the duty on tin 
finer grades of raw wool rendered the imported fiber so 
expen.Mve that the manufacturers were confined to the : 
ing of cheap satinets, broadcloth.-, tlannek and blai 
The only notable gains of this period were due to the in- 

ion of power looms for the weaving of knit good 
the manufacture of ingrain and Bru.-sels carpets. 

Notable Inventions. Under the- stimulus of the p. 
law, improved machinery wa- bring introduced into- 
branch of manufacture. From 1840 to 1X50 pat- 
granted at the rate of 646 per year. M-t notable among 
the inventions affecting manufacture- was the sewin^- 
iiine. Elias Howe brought out his invention in 1846. 
The machine proved an immediate success, and II 
made a fortune from its sale. Improved patent- 
soon put upon the market, but the rival manufacturers 
entered into an agreement (1856) for the merging of their 
rights and the division of royalties. I. M intro- 

duced the method of sale by installment s, and by this 
means the labor-saving device was brought within i 
of the poor. The output in 1853 was 2266 machine- ; MX 
years later it was 42,539. The advantages accrui: 
the large workshop by the division of labor and super- 
intendence of details, speedily converted the manufacture 
of ready-made clothing from a domestic to a factory in- 
dustry. The capital invested in this business doubled be- 
tween 1850 and 1860, and the value of the output increased 
from $48,000,000 to $80,000,000, but the number of em- 
ployees increased only 19 per cent in the same interval. 
The saving in wages reduced the cost of th< 
product to one fourth that of the hand->t itched gar: 
The duty on ready-made cloth ing was o:ritied in the tariff 
of 1857. 

The must important application of th hinc 

made in the manufacture of shoes. The invention of a 
needle that could carry a wax thread through leather. 

rwuion and Rtwnut Tariffs 261 

verted the making of boots and shoes into a factor) 

last decade before the Civil War. In 1861 U.S. 
M. K.t> Invented a machine for sewing soles to uppers l900 '?* 
t nan pegs could be driven, even by machinery. 7*4-7,*. 
This i needle enabled a stilled workman to sew the 

soles . indred pairs of shoes in a ten-hour day. 

labor cost of the machine-made shoe was reduced to 
.1- hand-sewn article. So pre- 
ere our advantages in this branch of manufac- the import duty might now have been abolished 

he offsetting duty on leather. 

Agricultural Machinery. American agriculture was 
carried on in wasteful, unscientific fashion until the middle 
t^nth century. Farm implements were of 
rudest. Spades, mattocks, pitchforks, and plows Ch n 
wer manufacture, the iron parts bcin n* 

clumsily wrought over a blacksmith's forge. In 1807 
Peacock succeeded in popularising his iron plowshare in 
New Jersey, and in the next decade Smith's plow came 
general use in eastern Penn The cast-iron mold- 

board was not only cheaper than the plated wooden share, 

-ler and more effective, because it offered less J 
resistance to the soil. More than t\\ < >and patents JJJJjJJ^ 

since been is. improvements in the structure ACT. in US. 

Pati i automatic mower were taken out byj^g-Bym. 

Husseylof Baltimore, December 31, 1833, and by Qyjus Ch - 
H. McCormick >f Km-khridgc. the following 

Juiu. These reapers enabled one man with a team of 
horses to cut as much grain as tv. ing a 

cradle. Hands were scarce in t: \\'est, and farmers 

eagerly availed themselves labor-saving device, 

were three machines manufactured in 1840, three 
thousand in 1850, and twenty thousand in i ^ 
tin principal market was in tin- upper Mississippi Valley, 

ire gravitated to this section. Mc(\.rmick's Robert*, 
reaper was made at a blacksmith's shop in the Shen- *{?Kf 
andoah Valley. In 1846 the works were transferred to ch.ii. 
ui.iti. in 1849 to Chicago. 

262 Jn(Jnstri(il HistOfy of the Lt: ' t/t'S 

Labor-saving machinery and cheapened transportation 
greatly increased the output of the Western farm-. Wheat 
and corn, wool and cotton. \\ere di-pati hed to tin- manu- 
ring centers of the East or shipped abroad in un- 
precedented volume. The farmer's only thought R 
produce as much as hi> land would yield, without r< 
to tin- limitations of his market. The eflfa t \\a< a speedy 
glut of the market, which brought about a ruinous drop 
in prices. 

Commercial Fertilizers. The use of fertilizers with 

which to nourish exhausted soils came into use in this 

period. One thousand tons of guano were brought to the 

Census, 1900, United States in 1848. The importation steadily in- 

i69 ' creased in the decade following, and amounted to 

thousand tons in 1856. But the Peruvian, as well as tin- 
Mexican, supply was soon exhausted, and the manufac- 
ture of mechanical fertilizers was undertaken by an < 
prising physician of Baltimore. The essential plant food 
was derived from bones, shells, and phosphate rock, pot- 
ash, and ammoniates. The refuse of fish tanneries and 
slaughterhouses also was converted into nutriment for 
growing crops. 

Development of Commerce 

Shipbuilding. Our free-trade epoch witnessed a doub- 
ling and trebling in the volume of foreign trade, and a 
esponding increase in our merchant marine. After a 
long period of depression, the shipbuilding industry re- 
covered the prestige of former days, and the tonnage 
figures of 1810 were finally surpassed in 1846. During 
the next fifteen years there was a steady i; in our 

f * K \ r I \" T T 

' ocean tonnage, which amounted to 2,500,000 tons in 1861. 
164^170. c were prosperous times for American shipyards. 

\\ V had oak and hard pine in plenty and the U>t ship- 
wrights in the world. Skilled artisans from all countries 
flocked to Bath, Salem, East Boston, New London, 
New York, Philadelphia, Wilmington, and Baltimore, 


// /:"I/M ///,// iW Rtvrnut Tariffs 263 

to avail themselves of the high wages paid by the leading 
builders. The construction of a schoocu hundred 

tons cost $37,500 in the l luted States and $43,000 in 
England. his advantage we were able to build all 

<>wn ships and to sell many abroad. The Br 
embargo on American-built ships was removed in 1849, and 
-rtant market was opened to us. In spite of the 
discri is against American built vessels imposed in 

Lloyd's insurance rates, many ships were " sold foreign " 
at a fair profit 

All along the New England coast, wherever cove or 
mouth gave c> :ig room, smaller 

vessels were building, schooners for local trade and 
smacks for the fishing fl< :iy a Yankee skipper 

built his own vessel, manned it with friends and neighbors, 
and made independent commercial ventures up and down 
the coast Captain and crew were bred to the sea and 
excelled in skill and daring, so that American sailors were 
noted in all ports for self-reliance and re ness. 

Good wages and the standard food and quarters pre- 
scribed by Federal law attracted many foreign seamen to 
our sen i 

The great majority of our ships were fast sailing vessels, 

famous Yankee clipp< -t and stanchest 

craft afloat Half a .uket lines made regular 

:ia to 

|XH)1 an. < vessels were built with a view 

to speed, and such was the seamanship of officers and men 
that the eastward trip was usually made in from eigl 

six days. The repeal of t 1849 

admitted American vessels to traffic between Great l: 
and her colonies, and our merch. 
secured their full share of the i . 

.in and European lands. 1 with 

and became at last of equal advantage to both parties. 

-t sailing vessels 
the voyage round the 11 .rn, and vessels of the 

264 Indtistiiiil History of the I' nit 

Ocean and 



The Atlantic 

largest and hot models wen- huilt for tin- ! 

Com nun CO Atlantic ports and San Diego and 

cisco, by this route or by tin- Isthmus of Panama, 
was interpreted to be coa> :lr and was thc!< 

restricted to our own vessels. Extravagant pri e- 
charged for transportation of passengers and 
and shipmasters reaped golden profits. Cramp on the 
Delaware, Webb on East River, and McKay on the Mystic 
vied with one another in producing mammoth vessels for 
this trade. The California boom was hardly -pent 
quite as unexpected an opening was furnished by the 
Crimean War. The combined British and French fl 
were unequal to the forwarding of troops and sup] 
and American vessels were requisitioned for the transport 

Subsidy Policy. Our very preeminence in the building 
and navigating of sailing vessels proved our ultimate un- 
doing. The attention of the shipping interest was so 
concentrated on our fast clippers, that the greater ] 
hilities of steam were ignored. The Savannah, the first 
-t earner to cross the Atlantic (1819), had been built on this 
.-ide the water, hut that was regarded a mere deed of brav- 
ado, and the venture was not followed up. In England, 
on the contrary, the scarcity of timber forced the adapta- 
tion of the steamboat to ocean commerce. Both coal and 
iron were then cheaper in England than in the Ui 
States, and the English government stood ready to sub- 
sidize promising ventures in this new t"ield. The Cunard 
Company (1839) established a line of transatlantic steamer- 
and was accorded $425,000, and later $850,000, per year 
for carrying the mails between Liverpool, Halifax, and 
Boston. The subsidy far exceeded the cost of the mail 
service, and was, in fact, paid as a bonus on a 1 
investment. In 1840 the Peninsular and Oriental Line 
to India and China, and the Meam \ 

Company running steamers along tin- west coast 
America, were subsidized in like manner. Tlu-e FnglMi 
lines offered swifter and more regular service than sailing 

. / I'-.tpoHswH ami KtvtHHt 

i In- transatlantic, Asiatic, and South Ameri- 

'ovcrnment came t the aid of steam c*. 

i he Ocean Steam- --w York 

v re and Bremen was subsidiied at the rate of $200,000 
per year. The Col. jool ng*-i*>s. 

was offered $385,000, but the stipend was raised to $858,000 | J 
because the vessels built exceeded the con; ons. ,^,^7. 

The Collins steamers,* the largest, swifto *t com- I**-T* 

fortable ships d lay, competed successfully with the | 

r passengers and in i-ht II. n.. 

freight rates fr med an im- I7IT 

mediate ju>tiikati. , \ . and Congress Appcndb. 

bestowed >. The Pat subsidized to 6o - 

.annum of $250,000 per year, sent the first steamer 
m in October, 1848, and came in for a full 
share of the profits of the ( 
to Colon, and the Aspinwall from Panama to San Fran- 

i i> M. u, rr altO 

extraordinary prosperity of our shipping interest 
was viewed with cono .md We>- 

states. All the subsidized stea -h the cxccj 

^ini;U' line fr \-ana, sailed f: 

-rn jx>rts, and the sh : j>s were built in : 
states. It was the general 

hould expend more than one and a half 
million dollars a year in sup|X)rt of an industry whose 
ta were accruing to a single section of the country. 
The Southern planters protested that tl n could Coog. Globe 

be as cheaply and safely carried in 1 esscls. Sub- 

> had been advocated by But K r King of Georgia in the 
iiipping woulrl n uch 

ces, but when these hopes proved fallacious, Southern ^ % ^ 
state- ..rously opposed the steamship bonus. In 7 74 - T Sj. 

1856 the subsidy to the ( ;ie was reduced from 

$858,000 to $385,000. The sudden reduction in revenue, 

266 Industrial ///\A>/T (>f t/i, ' Shr/< - y 

coming immedia; | -learners. 

i lu- enterpri-e. for tin- company had spent all its 
income on improvement and lu-ld :ands. 

\iving vessels were sold for debt ami -peedily 
transferred to the English flag. Undeterred ly this 
.ncholy example, Congress proceeded in i\s,s to limit 
all >ulidics to the amount of sea and land postage on tin- 
mails actually carried. 

Some compensation for the decay of foreign comi: 
was found in the coastwise trade, which offered abundant 
scope for the talents of an enterprising captain. The 
age from C'alai>. Maine, to Point Isabel, Te\a>, was 
twenty-six hundred miles, as long as that from Boston to 
Li vcrpool, hut more profitable because of tin- many inter- 
mediate ports. The ha/an Is of the pa>>age round Cape 
Hatteras were reduced by the building of the Che-apeake 
and Albemarle Canal (1855-1860). The voyage from 
Boston to Puget Sound v ED thousand miles, but 

along thi> route, too, stops were made at Rio Janeiro, 
Buenos Aires, Valparaiso, Callao, San Diego, San Pedro, 
San Francisco, and Portland, with a profitable interchange 
of cargo. 

The Panic of 1857 

Sumner, Our third financial panic, like the first and the second, 

was caused by undue speculation. The extraordinary 

160-187. success of many business ventures tempted men to i 

too heavily. The purchase and improvement of lands 
in the new West, the opening up of mineral resources, 
notably coal and iron in Pennsylvania, the build: 
ships, the construction of railroads, all required large in- 
vestments of capital that could bring no immedia: 
turn commensurate with expenditure. The 1,350,000,000 
buried in railways between iS_;o and iS6o repre-< 
an enormous drain on the resources of the country. The 
sinking of one tenth as much capital in canal- had wr 
these enterprises in 1837. As then many canal ventures 


were abandoned, so now several Western railroad ti. 
prise .Illinois Central, 

bankruptcy. Uoubt- Wrifk. 

least) 'i>ort duties in March, 1857, preju- 

diced such ma riteresU as reaped no adequate 

l>ensation from free raw materials. Some mines and 

ies were dosed, and many curtailed production; 11.109-116. 
but the general depression was slight as compared with 
ity years previous. Comparatively few 
opera thr.iu and the de- 

in wages was made good by n -i the o 

The prosp farmers and planters was un- 

>K-d. their foreign market : heat, and cotton 

being furthered by free trade, 

narily a financial panic. Bank Dewcjr. 
management had been conservative and wise in the ten 
years, 1843-1853, in the Eastern cities. Few new 

"bank- \\ere established, loans \\ere exlendrd \\ith ..fHi-.!i. ,, t " , 

and the issue of notes was kept within reasonable limits. 

$100,000,000 n the 

' mints furnished a sufficient specie basis for bank 

rum edit agencies kept pace with the normal 

ess development of the country Hut in 1853 a 

specu took possession of the financial world. 

In tl; r number >i" bai 'itu- 

\vas doubled, credit money was issued to the >\im of, more than double the amount outstanding 

17, and loans ran up to $684,500,000. On August 

s;. the obligations of the \e\v York banks were 

$i 2.000,000 in excess of their available capital. The failure 

urance a i August 

agged down some leading New York firms. A run on 

th- ! lowed, and all but the m->t conserva- 

^ed to suspend, while thousands of the more 

specu -e-i went to the wall. There 

failure^ in 1858. The losstl 

reached an unprecedented $387,500.000, but they p tttf>M iuoi. 

largely on bankers and inveM < rank and file *s*-*6. ^44- 

268 Industrial History </ the I'nitf.t 

of producers were littlr 1>\ tin and 

no prolonged drpn- i->n of hiMiu-ss followi-d. Industrial 
lopment would h no serkni hut 

for the overwhelming disaster of a great civil war. 





Slavery versus Free Labor 

Trend of Southern Opinion. In the first decade of lade, 
our ii. y, antislavery sentiment was stronger in <* vnL 

Kngland. Washington repeatedly 

essed his hat slavery should be abolished, 

cd his heirs to set free his slaves and provide 

a and maintenance out of the estate. 

Jefferson regarded slavery as degrading to master and man 

X, i: XI. 

Virginia a bill r gradual a 

emandpii ildren of slaves born after the passage 

were to be educated at th expense " to 

tillage, arts, or sciences, according t tlnir geniusses, till 

:cmales should be eighteen, and the males twenty-one ill. 
years of age, when they should be colonized to such place 
as the he time should render most proper, nr. 8-&4, 

h arms, implements of household *4-*s- 
t s seeds, pair> oful dom 

hrm a free and independent people, 
;r alliance an till they 

have aaj ;igth ; and to send vessels at the same 

it) otlur part- of the world for an equal numbt 

luce whom to migrate hither, 
ucouragcmcnts were to be proposed" The 

r*on hoped fur ult \ hill 

of slaves was brought before the 

2?O ///,. 

f the 



Negroes of 



a ions 

< 'cnsus, 


Slave States, 


Story of the 
Negro, I, 


Virginia legislature in iS^i, and a similar proposition 
debated in the Kentucky assembly as late as 1849. Vir- 
ginia prohibited the importation of slaves from ab- 

B), and Maryland folloucd her example in 17.^. The 
ty years' >n of the slave trade c. -needed by 

the Federal Constitution was condemned by prominent 
Southerners. James Madison declared: ity years 

will produce all the mi>chicf that can be apprehends! from 
the liberty to import slaves. So long a term will be more 
dishonorable to the national character than to >ay nothing 
about it in the Constitution." 

A considerable number of slaves was be in g emancipated 
by the voluntary act of their owners. John Randolph 
had siimali/ed his detestation of slavery by freeing his 
negroes and bequeathing $8000 for settling them on 
soil, and this "shocking example " was followed by other 
conscientious planters. The Friuids of Sandy Spring, 
Maryland, freed their slaves early in the nineteenth 
tury. One wealthy Virginian emancipated his forty-one 
slaves by will and provided for their transportation to 
Cass County, Michigan, and for the purchase of land for 
their use. The number of manumissions steadily increased 
until they amounted to from two to three thousand a \ 
and it is probable that in the last decade before the Civil 
War some twenty thousand negroes were so set free. The 
number of slaves escaping to the Xorth was by comparison 
inconsiderable; the total reported for 1850 was ion, and 
for 1860, 803. In 1860 the free colored population of the 
United States reached a total of 500,000, of whom 250,000 
found in the Southern states and 11,000 at the na- 
tional capital. The presence of this large body of f reed- 
men, neither citizens nor slaves, and having, then 
no political status, caused considerable uneasiness to the 
ruling class, and 1 Mating their conduct passed by 

several states were hardly less severe than the slave code 

To Southern statesmen the insuperable obstacle to g 
eral emancipation was tl .Ity of providing for 


:> the American social and induM 
Clay hated slavery and ardently ;.. 
this deepest stain a character of our 

ic assuri Colonist 

re Mihmitle 

should h gradual eman- f> 

all the slave 

iful as it is to express t 
t thai it would IK- unwise to emanci 
; cl ic \r aggregate of all t 

h would lie engendered UJM.U society UJH.H 

h general emancipation and of tin- liberated 

slaves remain niiscuously among us, would be 

r than of slavery, great as they un- 

are." Clay favored .ni/-iti.n of 

emancipated slaves in the Ian* I : h th<-\ had been 

!. and ur^ttl >ngress the duty 

ii the means of transportat xx> .;.' 

each year the e nnual iiu-reasi- in the 

colored popul.i opjh.rt unity 

the freedmen safely were he slave 

states would enatt radual emancipa- 

> rid themselves ** of a universally 

acknowledged curse." 

Washington in the hop, ling a freedmen's 

west COu ica, under nn<lilion^ 

sh)uld secure their immediate comfort and give some 

mce of i self-support. The first settler 

at Liberia was mat!' even years later, according 

here were fifteen hundred freedmen in residence, 

were successful 1> and 

sugar, and w .4 a fully constituted govern- 

1 1 >i;rther \N ith schools, churches, and a public library. 

i-ria became an independent state, there iv BOW. 
'nut t-i^httvn thousand blacks of American or * 6 ' 

< deportations had amounted to far ^ 3 
less than tlu- .miicipated i 

272 Industrial History of tlic I ";; 

it became evident that the solution offered by the Ann 
Colonization Society wai ultrrly inadequate. 

Kr.-wn. The Proslavery Movement. Meantime, as the in- 

terests of the cotton planters gained ascendancy in the 
of the South. ;i vigorous agitation in fav..r of the 

DC Bow. "peculiar institution" took the- place of emancipation 
projects. The attempt of Northern Matomen to extend 
the prohibition of slavery to the new Mate of Mi-snuri 
failed (1820), and only that part oi I I ntory 

lyin^r north of 36 30' was reserved to free labor. Vi: 
and Maryland and the Caroli: u desirous a 

Gulf states for the extension of the slave syMcm. for t hex- 
had more negroes than could be profitably employed on 
the xvornout plantations, and the planters would be ruined 
xvithout an enlarged market for their one surplus product. 
The capital invested in cotton plantations amounted, in 
1840, to $327,000,000, and the annual product repre- 
a gross income of txventy, and a net income of ei^ht per 
cent. Large-scale production seemed to necc itatc -lave 
it ..line-!. labor. Governor Hammond of South Carolina declared 
( NI11 ' that the cotton industry would be ruined by the emanci- 
pation of the negroes. "The first and most obvious 
De Bow, effect would be to put an end to the cultivation of our 
n. 235- ' great southern staple. And this xvould be equally the re- 
sult, if we suppose the emancipated negroes to be in no 
way distinguished from the free laborers of other countries, 
and that their labor would be equally effective. In that 
case, they would soon cease to be laborers for hire, but would 
scatter themselves over our unbounded territory, to become 
independent landowners themselves. The cultivati 
the soil on an extensive scale can only be carried on win -re- 
there are slaves, or in countries superaboundin.u with free 
labor. No such operations are carried on in any portion 
of our own country where there are not slaves. Such are 
ied on in England, where there is an overlloxving pop- 
ulation and intense competition for employment. And 
our institutions seem suited to the ex i i our re- 

spective situations. There, a mi: r numb- 

ills 273 

n-.,uin-.! .it OM HMOO ! tin- yctl th.m .it ajfr 
..'.:<..! thr !.-.:.. may enlarge or diminish the qua 
of labor he employs, as circumstances may r< 
about the same quantity <t labor it required at every 
season, and the planter suffers no inconvenience from re- 
taining his laborers th: 1 iiaginc an ex- 

i d by free laborers, 

;>s strike for an increase in wages at a 

seas- neglect of a few days would insure the 

destr >le crop: even if it were possible to 

laborers at all, what planter would vet .irry 

ances? I need hardly 

say, that these staples cannot be produced to any extent . 

: the HI!. ta it with his own 391-425. 

hands. He can do lit: the necessary 

food for himself and : y." 

As the money interest in slave labor grew more pot' 

leaders undertook \ the labor system of 

vi- that slavery was no more de- DBOW. 
grading than wage labor. the essential char- 11. j.' 

^lavery, ai d it diiTcr from the 5^ 

it-s ? If I should venture on a definit 

I shot led to labor at the 

will of annthcr him mu 

of th< ;prry exists; and 

imma \\hat - 

labon . l bat no human being v 

ne sort of compuUion. He t .tnnot be com- 
liut what difference does 
i can infl: thrr M>r 

will l>c equally effectual in subduing the will can 

: alarm him t- of himself 

or lii it not under thi^ compuU: 

thr labors?" ,,<...,; 

Agai i arguments, one should in all fairnrs> xt TheCoitoB 

areful \ I?** 10 *", 

made exti-ndol horseback journeys thr 
h in 1853 and 1855, became convinced that the .-5 

274 Industrial </ ///* \ 


00 Bt, 
08-90, 105, 

Slavcr>' in 

Slavery and 

industrial efficiency of free labor \va> from two to four time* 
that of slaves who lack tin- stimulus of acquisition. " This 
is the truth, then is it not? The -laves are generally 
sufficiently \vell-fed to be in tolerable working condition; 
but not as well as our free laborers generally are : da 
in practice, affords no safety against occasional suff. 
for want of food among laborers, or < in>t their 

stan'ation, any more than the compctii :n ; while 

it withholds all en. enl from the laborer to improve 

his farulties and hi> skill; destroy- hi- 
directs and debases hi> ambition, and withholds all tin- 
natural motives which lead men to endeavor to in< 
their capacity of usefulness to their country and the world. 
To all this, the ixr.isiwKil suffa laborer i- 

favorable, on the whole. The occasional suffering of the 
slave has no such advantage. To deceit, indolence, malev- 
olence, and thievery, it may lead, as may the suffering 
... of the laborer, but to industry, cultivation of skill, 
perseverance, economy, and virtuous habit-, neither the 
suffering, nor the dread of it as a possibility. 
lead the slave, as it generally does the free laborer, i; 
it is by inducing him to run a v 

Trend of Opinion in the North. The cmancipat ion 
movement of the North, in its later stages at least, gathered 
inspiration from the democratic theories of Thomas 
rson. The gospel of liberty, equality, and fraternity 
imbibed in revolutionary France led Jefferson to ; 
to the Declaration of Independence the aertion that " all 
men are created equal." the potent shibboleth of every 
humanitarian movement that ha- airitated the American 
people since his day. Earnest of his faith in this demo- 
cratic dogma was given in Jefferson's plan for the or- 
ganization of the Northwest Territory (submitted to the 
Congress of the Confederation in March. 1784), in which 
manhood suffrage, the sale to actual settlers of the public- 
lands, and the prohibition of slavery were guaranteed in 
the region Vir: - about to cede to the I'nited Si 

Jefferson's accession to the presidency was hailed as the 

' 27$ 

triuii Phc removal of the 

-e in i In- nr*t decades of 

itury and i he extension of the ballot 

l-milr-r tizen was th< i of his 

The Humanitarian Movement originated with the visit Robert Dak 

>.ven. the 1 

o\\en \\as tin- founder of a model factory 1 
\cw Lanark, Scotland, and 

i .,. thr iir>t successful mil 

child lain.r in theiotton millsof Great Britain. The vested Sargaot. 

is of t! oppose.! us obstacles 

to i tu- tarry; >ocial and economic ideals, and \\ 

nt in communism on 

t of tl. >and acres along the 

Wabash River was purchased of the >, a German 

1 vt-n invititl : 

ami \vrllKiisposed "I all nations" who desired 
to test the socializing j* : human brotherhood 

imlntl jK-oplc gatht-ml at New 1! ,* 

and $200,000 out of Owrn'> private fortune was invested 
in thr r\jH-rimrnt ; lut thr i.lral omimunity hrld together Ch. n-IV. 
three years. Owen found explanation of the failure 
Ifishness of human nature. " There was not 

there was not mutual confide; 

there was not practical experience . there was not unison 
of action, because there was n :niiy of counsel 

These were the points of difference and dissension, the rock 
u|>on \\hiih the social bark struck and was wrecked." 
During this and subs* he United States, 

this apostle of a new social order lectured to great audiences 
in Eastern cities, and addressed a distinguished assert 
at the national capital. He counted su 

y Adams among hi> friends, and solicited public 

indorsement "t" his panacea \voes of society. Un- 

1 by the failure at New Harmony, his disciples 

under- ;nilar experinu * 1." Mring 

years from i s ;o to 1860 clevca Owenite communities were 





Oi. IV. 



. III. 

and Sumner. 
L.tUr Move- 
ment, 1820- 




planted, flourished for brief period-, and died. Mo>t of 
the .ime from Nr :id. and. with tin- sole 

exception of Nashoba. an experiment in emancipation 
their M-ttlent( north of Ma>n and I line. 

Owen failed to demonstrate the <<>m- 

munism. but his inlluence for social betterment was g 
h in human brotherhood and in tin- possibility 
social and economic reform >pread like a re, i\al 

throughout the North. Many of the men prominent 
in the humanitarian movement- of the next thirty \ 
G originally converts to Robert u r o>pel. 

The Organization of Labor began with the introduction 
of machinery and the massing of operatives in 
and workshops. The natural etYect \\a- the conscious 
of common interests and the determination to promote 
the betterment of working conditions by concerted demand. 
The iir>t trade unions appeared in the industrial centers 
of the North Atlantic states; New York witnessed its 
lir-t Mrikc in 1X02, Boston in 1X25, the lir>t trade union 
council was convened in New York in 1833. With im- 
proved facilities for communication and assembly, i 
local unions were converted into federal associaT 
The printers were so organized in 1X52, the hat fmi>hers 
in 1854, the iron workers and machinal-* in 1X58 and 1859. 

Bodies of mechanics affiliated along trade- union lines 
will further their own immediate interests with small regard 
for the well-being of unskilled laborers, but with th 

on of the suffrage, workingmen began i 
secure, by means of the ballot. la\\- thai -hould benefit 
not their trade fellows merely, but the whole body of \ 
earners. The Workingmen's party held it- -n-ral 

convention at Syracuse in 1830. I n the following year the 
New Kngland Association of Farmer-. M< and 

Other \Yorkingmen proposed " tin D of tin- 

whole laboring population of this I'nited Republic " and 
the revision of "our social and politi. ." The 

founders declared their " i :-minatin to 

till our wrongs ar^ and to imbue the minds of 

ills 277 

our offspring 

of aristocrat)', and of , , 

invincible, that they shall dfdJfltf ' 

pletion of the work whi 

tluir -tiuv^it- for national and their sires have contii 
in their contest for personal ifHfpfiidfT 1 ' - 1830 the 

Workingmen's part rk polled less than three 

thousand votes in the state elections, but in New York 
where the organization had a strong constituency, 

legislature In i * ; . the party declared for Andrew 
Jackson and threw all ii^ \veight in favor of the I)< 

^35, as " Locofocos," they captured 
N Demo* nulgated 

a party platform based on the Declarat 
pcndence. Martin Van Buren owed his election in good 
part to the \ou- .f the working the Eastern 

states, and he rewarded their loyalty (1840) by prescri) 

Mployrrs <>f the national | 

ernn < MS of 1837 and the subsequent indus- 

trial de|>ression checked, for the time being, the growth 

1842 a second wave of socialist enthusiasm passed 

-land and the North. AlU-rt Brixhaiu-. th. 

apost s gospel of associ. ad a hearing 

-.] the mi^t thoughtful men of the d. 

! William 

Henry Channin^. who olited the .V/>rV// lell 

Phillips, ParkcfcGodwin, etc. A numU r pha- 01 

. and to 

< came men and women of all classes and c< . ( h u 

hoping to find in community of ]>roperty and labor the 
secret of social regent -ration. These associations, wit': 

.IN in the Nurther 
I Illinois, and Iowa. The practical : the 

tganda were no more enco 
the Owen I 1 u-nt ; but it> influence was even greater 

278 / / History of the United St* 

and more lasting. Failing to establish ideal communities. 

eformcrs undertook to remedy tin- abu>e- of the * 
in whuh th< :vcd to live. The labor movement 

gathered fresh energy. George Henry L\an> ami Robert 
Dale ' es Wright, all thnr of Kn^li>h birth 

and Owenites, addressed great audience- in tin- Hall of 
Science, New York, and convinced their hearer- of tin- 
necessity of agitating for le^i>lative reform-. I-Aan-\ 
paper, Young America, set forth ainon^' tin- object- to be 

:ned "tin 1 abolition of chatk-1 -la\cr\ " and tl;. 
distribution of the public lands. 

Slavery and the Territories. The advocates of the- 
ri.L'ht- of free- labor >trrnuou>ly opposed the annexation of 
as and the resulting war with Mexico. Tin- Mr\uan 
cession an accomplished fact, they strove to prevent the 
admission of slavery into the territories both north and 
south of the Missouri Compromise line. As the Demo- 
in;:ir. cratic party fell under the sway of Southern political lead- 

ers and became committed to the policy of non-interference, 
Lower' South ^ lalx)r men transferred their allegiance to tin- Liberty 
inAm. IlUt.. party, with whose li.s;ht against slavery and champion-hij) 
83-112. of free land they were in hearty accord. The I 

The- Democracy, organized at Buffalo in 1848, combined tin- 

more moderate winjj of the Liberty party, the malcontent 
Whigs and Democrats, with the elements of the Working- 
men's party. The platform declared the prime obj. 
this revolt to be to maintain " the rights of free labor a.izain-t 
the aggression of the slave power and to secure free soil 
to a free people." The Massachusetts state convention 
more succinctly expressed the point of view of tin- 
earners: " Resolved, That labor is universally dishonored 
and it- interests compromised by the existence of <lavery 
in thi- country, and that the lir^t step for it- elevation 
Julian. must be the limitation and extinction of slavery." Van 

Huren. the nominee of the Free-Soil I ' i ured 

291,000 votes, of which 120,000 were polled in Xew York, 
;S,ooo in Massachusetts, and 35,000 in Ohio: but he 
defeated by Zachary Taylor, a slave owner who had 

mit CdMJfs tmd Results 279 

;>opular i : service in the Mexican 

War platfon: Free-Soil Democ- 

racy declared explicitly that slaver be excluded 

land ..! the 

.lies belongs to the jicople and should not be 
sold to individual" n..r .r.i:/. : to corporations, but should 
Id as a sacred trust i..r the bet .e people and 

should be granted in limited quant M of cost, to 

The 156,000 votes c. i.Ue and 

fell far short of Van Buren's total, but rep- 
resented a body of men thoroughly convinced on these 
two points. 

ranees of the Republican party on the mooted Jufca. 
questions of slavery and the j mblic lands were more cautious, ' 

lut its platform served as a rallying ground for the aboli- tiooml* 
tionist- tlu- frec-soilcrs. and th< ho cared most of Convention. 

in 1856, 
.ind, togi 

with of \i-\\ Wis- 

consin ; and Lincoln in 1860 added t ; >ublican 

States New Jersey. Pennsyl 1 idiana, Illinois, Min- 

nesota, (.'.. and On 

The triumph < >f tin- I' IHMIU the exclu- 

ries and the ultimate ruin 
jHvuliar iiMituti The proslavery men of 

the S i-s forced the is> weeks aiur 

Lincoln's election South Carolina adopted the Ordinance 
of Secession, and HIT example was immcdi.r -\ved 

l.\ ti. Delaware, Maryland, Kmu. 

Missouri WIT. y slaveholding states that did 

secede from the Uni. 

The Cost of the War 

Each party to roversy was fighting for the 

maintenance of a |*>litual principle on which depended 

iccessofi i r economic and social order. The 

28o /;/-. 'ory of the rnifi .^ 



trul Condi- 

d m ol 
State*. no. 


Wealth and 





States of 

i XII. 


Ch. Ill, IV. 

reckless expenditure of men and money by North and 
South alike, and the issue of the war was determined by 
the final exhaustion of the C< y. The resoi 

of the cotton kingdom were far less than tho-e of the 
Northern states. The population of the South was t\ 
million souls, of whom four milli* slaves. Tin: 

North opposed a population of nineteen millions, all 
The taxable property of the South was, by tin- census of 
1860, estimated at five billion dollars, of which two billions 
represented slaves and one billion and a half real c 
devoted, in the main, to the growing of cotton. The 
property of the Northern states approximated eleven bil- 
lion dollars, and consisted, in good part, of manufacturing, 
mining, and commercial plants whose products were more; 
readily convertible into the sinews of war. When Lee 
rendered at Appomattox, his men were found utterly 
destitute of supplies and weak from lack of food. 

Confederate Finances. It was expected that the 
penses of the Confederate government would be met by 
customs revenue, but the effectual blockade maintained 
by the Federal navy stopped foreign trade, and the returns 
were disappointing. The individual states were then 
asked to levy a direct property tax of one half of one per 
cent, and to turn over the proceeds to the general treasury. 
No more than $18,000,000 resulted from this requisition, 
and payments were usually made, not in cash, but in 
bono!s. It speedily became evident that the augmenting 
military expenses must be met by loans. In the lir-t 
year of the war the Confederate government issued b 
to the amount of $15,000,000 at 8 per cent, interest and 
principal being secured by an export tax on cotton of one 
eighth of a cent a pound. T! 

Southern bankers, notably those of New Orleans and 
Charleston, and brought all the available specie in the 
Confederacy into the government treasury. The money 
was immediately sent abroad for military supplies. A bond 
issue of $150,000,000, ordered in the following year, was 
made payable in produce. By this loan the government 

'ts 281 

Dunuit-Tiox or 

282 / v of the Cniftii 

to posso res of cotton. t<- 

-ugar. and molasses, commoditi- - thai 
a drug in t)i< ith $1,000,000 in 

currency. A .000,000 was nego; 

in January, 1863, the bonds 

on, and since cot -riling 

England and on the Continent, these 

difficulty nt lii-ld his pledge 

350,000 bales of cotton, and the- supply might ': 
doubled readily, hut all efforts to >hip tin- to tin- 

foreign creditor- failed. 

Schwab, It soon became evident to ( ;< financiers that 

luit a fraction of the military expenditure could 
ly bond :id that r. dit money was in- 

.hle. Treasury notes, redeemable \\ithin 
and bearing inter ;<! in 

Ma- D the issue of April, iSo.?, the rat* 

d to 7.3 ]>er cent, (iovernment note ing no 

interest and not to be ix months after the 

'n of a treaty of \ re ordered at the 

time. This paper cur .able for i 

but the Confederate Congress refrained from declaring 
it le-al tender in payment of private debts. The issues 
of 1861 amounted to $30,000,000; by D 1862, 

$450,000,000 had been forced into circulation ; the output 
of 1863 was $150,000,000, and no 1 
of the last two years of the war. The sum of tl: 
Confederate currency approximated one billion. To this 

tiling total were added millions of dollars by tl 
recorded issues of the state governments, tin 1 

ate business firms. Depreciation f- inevitably, 

in part because the currency wa< inflated, in 

-e men lost confidence in its ultima!' 
In January, 1863,8 gold dollar- 
Confederate paper, twelve month- ed for 

:ty-one, and in January, 1X65, \ 

debased currency. A !:ichmond, the 

Confederate money passed out of circulation. The notes 

./// 283 

were lost or destroyed or found their way into historical 

South resorted to various other 
financial expedients that had futile during the 

utionary Mm who relWd to reiei\e Coo- 
< nounced as traitors and condemned 
he state legislatures to heavy penalties; price con- 
ions were held \\ith a tcs of ex- 

change; stay laws were passed SUM 

-. till the 

close of the war; the sequestr Cations owing 

he Federal governrm creditors 

\\a- ordered, ami i ..!;ii>i ati <i\ ! I'lm-n -tun- ami the 

d States to military uses was au- 

dcratc Congress. 
Federal Finances. batteries 

unprepared f< The surplus revenues of 1857 were 

exhausted, and the treasury showed a deficit of $56,000,000. 

>ms receipts under the Dt tariff pr 

adequate to ordinary expenditure, the rates had been some- 
what increased by the Morrill \ i. and in accord- 
ance \vith the recommendations of Secretary Chase, a 
further increase, notably in the r. on salt, 
coffee, and tea, was legislated in the fir 

rates were raised from year to year, but the customs 
receipt^ did not \\a\ in propor was 

rupted t-predations of Confederate 

cruisers, and there was a marked decline in imports. 

1 ; '.T-'Ms Ri I :J-T 





j <W fW> 

i Sg. 

v. 000,000 




lion.,1. Ch. 



, - ..: :-.. 

BoBf*. Ill 


284 /"</<' y </ tlu ' Unitt'ii 

Receipts from direct taxes were also disappointing, and 
the government had resort to other device-. Sumptuary 
taxes were laid on luxm ichts, 

billiard tables. and plate; licenses of many 

occupations; manufacturing and tran.-portation ton,; 
were taxed in pn>i)ortion to can;; 
quired on contracts, lejjal documents. etc; and . 
duties were collected from the prodiu-er> of spirits, ale, 
beer, and tobacco. With a view to adjusting the burden 
to wealth, Congress, for the iir-t ti history, levied 

an income tax. In iSoi three percent was laid on all in- 
comes of more than $800 a year, and in 1X05 th : 
raised to live per cent on incomes ranging from $600 to 
$5000, while ten per cent was required from ampler rev- 
enues. Since the Republican party was enthusiastically 
supported by the bulk of business men, tl little 

protest a/rainst these " war me Kvcn the income 

tax was paid with no grumbling, and with but little attempt 
at evasion. The 1865-1860 reached 

the unprecedented sum of $559,000,000; but military 
expenses augmented even more rapidly than incom 
the government was obliged to borrow the money with 
which to carry on the war. 


1861 ................. $35,389,000 

1862 ................. 431,813,000 

1863 ................. 000,575.000 

1864 ................. 776,096,000 


in In February, 1862, Congress authorized a loan of 

Bk. I. Ch. $500,000,000 in long-term bonds at six per cent, and at the 
same time authori/ed the i->ue of $150,000,000 in non-in- 
terest-b earing note-. The bonds sold but -lo\\ly. for the 
rate of i; ri>k of ultimate repud : 

was not high. Only 823,750,000 \v tred iK.m bonrl 

sales in the course of I vear. and the government 

<lts 285 

was forced to have recourse to bill* of cr< 
$150,000,000 was made in J i, and equal amounts 

So3. The act of 
cenbacks" legal tender p^ 
his provision was later 360-467. 

The notes neverthe- 
less <! ising pou amount 
preci.f ih the : of war, but j u . 

t was reached in July an<! ^64, 

\\lu-n thi llar was worth I- 

On Juiu- ;o, 1864, further issues were forbidden. War. 

vas alrea: The depreciated cur- MilchaH> 

h.ul driven gold 1 ilatinn . 

Coast, a: > of all commodities 

It is iMimated that ihr war debt 
was at lea than if government purchases 

had been made in sp 

Industrial Transformation 

The Nitionml Banking System. By legislat iewy. 

^64, ConRress provided 

lonal ban <l by government 

bonds. Every banking associa -.ith the 

be lurni^htnl l.y the comptroller 

of th -ing to 90 per 

n.orc than the par Bk n 
ed. A steady demand for o. 
I'nited States bonds was thus developed. The salt 
1863 amounted to $400,000,000, and $600,000,000 addi- 

l was sold 

year- i hundred national banks were organized, 

and $175,000,000 of redeemable < 


! .ink offi- 

Iv ragiT to maintain 

t the Federal trea 1 all thr business 

intertsts of the North were firmlv ai 

286 Initustn'.tl History of t lie t'>i:t/ 




Boll w. Ill, 
Ch. I. II. 



Report of 
the Sec. of 
the Trcas., 


Forty Years 
of American 
Ch. I, III 

u r e> <>f the national hanking system were 
equally important and enduring. For the unccrta: 
of seven thousmd varieties of state bank notes i--md by 
fifteen hundred private banks that were 1 by 

y nine state legislatures of varying financial pr<- 
clivi ties, was substituted a uniform currency whose rede mj>- 
tion was guaranteed by bonds of the United States. 'I In- 
state banks could make but a losing fight 
but the retirement of their issues v. JUT 

cent tax (March, 1865). 

Redemption of the Greenbacks. The accumulated 
\var debt of the Federal government, represented in 1>< 
treasury notes, certificates of indebtedness, and gn- 
amounted (September, 1865) to $2,546,000,000, and <>f this 
enormous sum no part was repudiated. The tax paying 
capacity of the country was ample to care for both ini 
and principal. An act of April, 1866, provided for the fund - 
ing of the bond issues and for the redemption of the govern- 
ment notes. Greenbacks to the amount of $10,000,000 
were to be called in and 1 for -pecie within the 

first six months, and the secretary of the treasury was au- 
thorized thereafter to redeem not more than $4,000,000 
per month. Only $44,000,000 was cancelled in accord- 
ance with this plan, but the contraction in the volume of 
the currency wa> attended by a shrinkage in prices that 
proved disturbing to business interests developed under 
inflated conditions. The redemption of this part of the 
government debt was opposed, moreover, by the ad\ < 
of cheap and abundant money and by the enemies of the 
national banks. Congress yielded to popular pre un ; 
in February, 1868, the cancelling of the greenb 
suspended, and the outstanding notes were allowed to form 
a permanent element in our circulating medium. The 
resumption of specie payments by the United S 
treasury in 1879 brought these legal tender note- toap 
with gold. 

Revival of Protective Tariffs. The increase of import 
duties was necessitated by the heavy taxes imposed on 

snomic Canst s ./ tits 2B7 

domestic industries, a tax amounting to eight and fifteen 

ii tome cases, vpercetr ictories, dis- J 

ies, a.ul iron works, burdened ons, ,' 

to pnxlui-e in on -vith un taxed P.M*^ 

orts, and it was agreed that the excise paid on textiles, xo-*s*. 
n and steel, |x-t r- -Inim. sugar, salt, paper, leatl 

v correspond]- da \\ith;:i J'-; (\ { 

the pa- e act of Cow 

1862, Congress passed a tariff law raisin tS6i-iS6>. 

suit i: 18 cents per hundrcdw* -i. 6. 9979. 

glass and inm manufactures from 30 to 35 j ood. 

on cottons from 25 to 30 per cent, on silks from 30 t 
per cent, on \v , to ^o j>cr cent with an added 

IT pound. The average rate 
for tin- taritT s^holuk- .| iS6j was 37.2 per t- 

: H64 a second internal act raised the excise 

.ixes and grr : eased th in- 

(-> suhjixt to thr U-\-y. act immotii.. 

followed, by whit h .ige rate on imports was raised 

to 47 per cent. The duty on glass manufactures mounted 

o 40 per cent, 10 per cent was added to the im- 

ks, the sped: >n woolens was raised 

to 24 cents per pound and the ad valorem rate to 40 

per cent, while the duties on raw wool imposed by the 

1 Tariff were doubled. So urgent was the need of 

revenue, and so ready were loyal Republicans to strengt 

the army and navy, that little attention \va- the 

rial bearing of this extraordinary tariff schedule. 

ill was accep' * > on 

Ways and Means with .hm-nt. Only three days' 

-sion was allowed it in the House, ami hut two days' 

Senate. v the representatives <> 

ess interests inflm details of the hill, asking 

and securing better rates than were necessary to offset 

their e\i ise tax, and the result was a degree of protei : 

accorded by any previous tariff. Import 

i;hcr had been imposed in 181 2, but they 

were laid t lancial emergency and were reduced 

288 Industrial History of the Cn;tt Sf.irrs 

Pewey. the year foil- lion of peace. Not so tin- 

tari: out of the Civil War Tin internal 

levied by the Federal Congress (with tin- exception of the 
excise on liquors, tobacco, matches, pat rut n 

: before 1872; but no conttpo&ding reduction 

import duties \\a> initiated by the party in p 
The indu>trir> that had prosprred \\ithin the tariff l>arrirr 
protected against opening the gates to foreign produ< K 
and they \\rrr tot) inllurntial to br gain>aid. Amoi. 
people at large a protective tariff was clo>ely ao. 
\\ith the vindication of Federal authority and th- 
pat ion of the slaves, and was regarded as essential to the 
maintenance of the Union. 

Stanwood. As it became evident that the import tax imposed a 

X1V - heavy burden on consumers, sundry attempts were made 
to revise the schedule, but these efforts secured only 
the reduction or repeal of nonprotective dutie^. Finally, 
when a surplus revenue of $100,000,000 had accumulated 
from customs receipts, Congress was forced to take the 
question of revision under serious consideration. The act 
of 1872 repealed the duties on tea and coffee, halved the 
"ii salt, and provided that but ninety per cent of the 
existing duties should be imposed on other imports. Hut 
the financial panic of 1873 alarmed the friends of th 
tected interests, the horizontal reduction of ten per 
was repealed, and the previous rates were restored in the 
tariff act of 1875. 

Material Prosperity. The war demands, coupled with 
the protective tariff, induced an extraordinary activity 
in every department of business enterprise. Universal 
buoyancy and unbounded confidence in the future ren- 
dered it easy to borrow money at home and abroad. 
Furopean capitalists invested readily in United States 
securities, railroad bonds, and mining stock, and the re- 
sources of the country were exploited as never 1 
The farm acreage was doubled and the farmers began to 
cxp- i corn and cattle to Furopr. wh. 

of crop failu; d them extraordinary prices. The 

Homic Ctmsfs and Rtsults 289 

English manufactures offered an unlimited market for Flu.Sockl 
American cotton and our exports developed to phenomenal j^ gf* 

;,r- ; Hi- :i I ?- .. .: " .- i... :.:..: < ... . ' 

us since 1850, was reverse*! in our 75. The tbrcwi 

annual output .vas doubled, that of coal quin 

r eased a hundred - 

i the decade following on the war. The iron ranges 
.r Lake SUJH n,,r r< /...: i were opened up and began 
vast quantities to the works at I' 

nominee, and Gogcbic ranges were within easy ran 
ports, whence direct transportation \> A as 

.provemeni* in method* of mining and smelt- 39 s 
ing soon reduced the cost of producing iron and steel t< > 

Pi XT deposits of the Keweenaw Penin- Rapt, oo 
sula were ront riln: - share to the gains of this phe- Q* 

. nal period. M {K-rations had bejrun in 1844, 481-486. 

hut the output was inconsiderable till after the war. 

! ii-Kigaii produced 

n thousand tons, the total yield of 

.it iil States. Since copper was then selling at $400 

his was an investment eve i than ..:":i-n-d ''> thr ir.-ri rau^r-. Kntri-i-rfiu-ur- and work- 

and the wastes of 

.in-ula v rtcd into income-bearing 


id of gold from California had fallen off, but 
.sources of supply wen- Comstock Lode, 

bearing veins of gold a 

was discovered in 1859. Here, in the heart of thr Great Rpc. 
Basin, in precisely the most barren n u- Cordilleran 

.iin of wealth was opened Uj 
was produced to thr value of $550,000, and gold to thr 

$200,000; prospectors and speculators flocked Shba. Stacy 
to the diMriit. .md m towns sprang into being. 

The jM.puIati. vada grew from 6857 in i86< 

i in 1870, and 62,266 in 1880. The climax of pro- 

2QO Industrial 

duction was reached in 1877, when tin- ('( unlock Lode 
yielded gold and silver t<> the value of $36,000,000. Thcrc- 
after the output declined, and Nevada yielded fir>t ; 
to Colorado. The pnxli; tin precious i 

began to exceed domestic needs, and tin- surplus was ex- 
ported. In 1873 we sent $40,000,000 worth <>t >il\. 

-n markets, and in 1875 $67,000,000 worth of gold. 
The development of manufactures was no less phe- 
nomenal than that of mines. New inventions and im- 
proved machinery stimulated business enterprise- in < 
line of production. The increase in the number of estab- 
lishments, output, employees, and wages during tin 
decade exceeded that of the decades before and an 

























Tarbcll, Hist. Notable among the material achievements of tin 
period was the utilization of a new and valuable 

Company. I. material, petroleum. The farmers of northwestern Pcnn- 
11 .mia had long known and used in rude fashion the 

" rock oil " that floated to the surface of streams and 
ponds. It was at first bottled for medicinal purposes, and 
Seneca Oil, Keer's Oil, etc., were sold as liniment all over 
the United States. Finally the inflammable < 
of the fluid attracted the attention of scientists. 
analysis proved that petroleum possessed constituents 
of high market value. Distillation developed illuminating 
oil, lubricating oil, naphtha, gasoline, ben/ine. paraffin, 
A company in Boston to produce and 

refine petroleum on a large scale, and their agent, \.. L. 


nil Rf suits 291 


!>airels of oil 

en the iir>i .l.i c crude \> \ was then worth 

$20 a barrel, his success converted this remote and barren 
region into a scene of wild speculation. The farmers 
began to drill for oil, and many a man discovered a fountain 

.Uth beneath his rugged fields. Prospectors flocked 
to the region and bought claims at random, and soon the 
upper valley of the Allegheny River and its tributaries, 

h and Oil Creeks, was bristling with pumps and der- 
ricks. T: 1859 was two thousand barrels. 
i required no pumping, but gushed oil 

and day, while a > ree, and four thousand 

barrels a day was .iordinary. The difficulty was 

to dispose of the prtxi V : r i the crude oil was 
carted in barrels t r, loaded on scows, and floated 

downstream to P but a branch railroad from 

vas buil 1863, and to Oil City by 

1865. Then pipes were laid from the wells to the railway, 
tanks were constructed at centers of deposit 

13 the oil. Forty million barrels of crude oil were 
brought t< the surface in the ; .e years, refined, 

and sold in the domestic and foreign market. The new 
illuminant was sent t ; <iia, and 

t, and by 1871 reached fourth rank in the exports 
of the I nited States. Meantime, twenty refineries had been 
set up in the oil region, but these enterprises were ham- 
pered by the difficulty of get t ling apparatus and the 
necessary chemicals over r. mtain roads. It was 
cheaper to transport the crude oil to Pit cvdand, 
business was even undertaken at 

Boston, New York. Philadelphia, and Baltimore, and foreign 
consignees began to ask lit secure 

manufacture. By 1869 Cleveland took the U.S. 
lead in r and value 

and the < 

rgest and most i-nu-rpr he Cleveland 

refini Standard Oil Company, succeeded in buying 

2Q2 Industrial History of the t"// 

up all local competitor-. and in si-curing from thr railroads 
preferential freight rates that gave it- , ;i advan- 

tage in Eastern and Western market-. \Vh<>le>ale pro- 
duction gave opportunity to convert tin- wa>te> of the 
refinery into by-products far more valuable than tin- main 

The wealth of the country as a whole, (K-pitt- tin- disas- 
ters that had fallen on the .^ 1 6,000,000,000 

in 1860 to $39,000,000,000 in 1870 and $43,000,000,000 
in 1880. During this same t\\< period, the popu- 

lation of the United States grew from thirty millio: 
fifty milh'ons, an extraordinary increase but 
than that of wealth. 





U.S. Census, 

/Wo, Mil 



No. ATL. 

No. CENT. 

So. ATL. 

So. Con. 


i860 . . 







1870 . . 




















The increase in per capita wealth of the Northern st 
i> the more remarkable because of the accessions to popu- 
lation five and a half millions were newly arrived immi- 
tS, The Irish, German, and Scandinavian peasant-, 
who thronged into the North Atlantic ports, made a 
come addition to the labor force, but contributed little 

lal to the communities in which they settled. 
Decline of our Mercantile Marine. In stril 

to the development of mining and manufactures 
shows the decay of the shipping interest. During the civil 
conflict United States vessels were fairly driven from the 
sea by the mischances of war. The ('< govern- 

ment had no navy and abandoned all hope of breaking 
the blockade of Southern ports, but half a do/en men-of- 

///* 293 

war, purchased in England, managed to effect great dam- Report of 

seas, seeking merchantmen flying 
nee these were usually wooden sailing id 

\e-M-lsand unarmed. th<> iril MQf prey t. the ( '..nlt-d. ^ 
rs, and the loss in ships sunk, burned, or captured 
. to 1 10,000 tons. Abnormal insurance charges 
and t Ity of ^-curing cargoes for vessels liable to 

til ocean commerce unprofitable. American 
1 in |Mirt or ma.i- the government 

ruinous sacrii .< ships pur- 

chased h\ .rrted into transports 

risers, a i throughout the war, 

more than one half of the suddenly improvised Federal 
navy being made up of armed merchantmen. Four fifths 
of the officers and five M rom 

the merchant sen 

falling 1 States vessels registered for 

foreign trade amounted to one million tons. The pro- J^ 
foreign commerce accruing to American vessels tkm. 

66 per cent in 1860 to 27 per cent in 1865. Ch. XX. 
transatlantic trade of 1866 exceeded that of any 
us year, and our m< .c to re- 

; heir due share ot hut it was a losing b;r 

for they came into c>: i the subsidized 11 

^land. In vain they jn-tii government aid. 

CongNH awarded .t mail subsidy of >: ;.ooo t" .1 line run- GH Gbbi 
Brazil, and ai f $500,000 to J '*** 

ipport was vouch- 
safed to entr >wvice. 

builders, too, labored under heavy dis- 
advantages. The excise tax of a per cent on the hulls of 516-5"- 
vessels and of 5 per cent on marine engines was R^. of 

repealed in 1868, but tariff duties on corda- and f^nchCom- 

copp . were allowed to 

d. A congressional c ted (187 

(Commendetl the repeal 
he duties on shipbuilders' raw materials. Copper 



4tst Cong. 


Cong. Rec- 
ord, Mil. 

Pt. III. 




Sato, 428- 

Thirty Years 
of Labor, 

ci rjob, 
1850, 1140- 

shear -n rods and bar-, holt 

the i built in tin- United State 

the foreign trade" were accordingly admitted in < under 
the tariff act of 1872. Tin- dmie> were, however, m in- 
posed in 1875, because of ; :>in the men who hud 
iron and copper to sell. With the 
sailing vessel, our preeminence in shipbuild: 
The new steamers could be built more < ( onomii ai. 
England, where fuel, iron, and labor were comparatively . 
cheap. There was some agitation for the adimVion of 
foreign-built ships to our registry, but the propositioi. 
defeated. The shipbuilder- pr< -aiiM tin 
of a policy that had held for eighty year-, and handicapped 
by these permanent disadvantages, our ocean marine 
steadily declined. 

The war that had proved so disastrous to our 
marine stimulated the growth of the coastwise se: 
The transportation of troops and provisions ^ave profitable 
employment, and ocean steamers were temporarily eon- 
verted to thi> trade. The tonnage of coasting cral'i 
from 2,599,319 in 1860 to 3,353,657 in 1865. M<n 
the exploitation of the lumber lands and mineral deposits 
of the Lake Superior region brought into requisition fi 
and passenger steamers of size and speed approaching the 
sea-going models. The traffic of the Great La! 
to rival the transatlantic trade in dimensions and value, 
and offered some compensation for the vantage lost on 
the high seas. 

The Homestead Act. Agitation for the free 
tribution of the public lands had been persistent and un- 
flagging for twenty years before the war. Tin- 
Democracy had led the movement with its proposal that 
" the soil of our extensive domain be kept free for the 
hardy pioneers of our own land and the oppressed and 
banished of other lai 'MI: homt fort and 

fields of enterprise in tl World." \\ h : '/-. like 

iel Webster, humanitarian-, like Borace <.r 
abolitionists, like Gerrit Smith, labor reformers, like 

s and Rtsults 29$ 

In iH45 Andrew Johnson of 

c of Kepre- COOT Glob* 
a rcsolut lomelcss 1*40- 1 

and Senator 7 
Stephen A. Douglas introduced a hill to the same effect in cuc Glob* 

.id bill POSH louse * 

presentatives. lie defeated in the Senate, the 

negative vote rn states, 

he balance of power in the upper house. 

iSoo), after lengthy conferences, Senate 

e agreed ir in a bill providing that any 

;> a quarter s< unappropriated public 

I tie thereon, and secure title afu : residence 

an. The Senate's c that a cash pay- 

men : e cents an acre be required, was accepted 

th considera even so. 

ill was vetoed by ! m. In a message 

ngress the President ju>ti: -. :i> follows. 

lands would be i: 
i $1.25 per acre for th 

.'"r> in ) roads, schools, and market 

town- and un- 

lands now to be given out at 25 cents an acre." 

artisans and laborers of 


West, take advantage of th. :\> f thi- bii 

ml tlu-m unlit." It would operate to the 
4- <>f th- <ilder states, whose 
lands was. i and whose rxipuUtioQ would be dnwn 

off b. The 

:ul effect 

. especially from statr> like 

Illinois/renneasee,. :he \vc*t ssfe- 

il to ntiiii-e the property 

within their limits." The President further raised the 

296 I 'nil ':/s trial It 

question \\hether it \\a^ " expedient to proclaim to all 
nation- of the earth that \\ ' hall arrive in tin's 

country from a foreign shore, and declare his inu -ntion to 
become a citizen, shall receive a farm of 100 acres at a cost 
of 25 or 20 cents per acre, if In- will only reside on it and 
cultivate it. " The loss to the government in tin- way of 
revenue would, moreover, be considerable. The annual 

me from this source ($4,000,000) would he reduced 
to $1,000,000. "The people of tin- I'nitcd Static have 

<nced with -tcady hut raj)id strides to their \\\< 
condition of power and prosperity. They have Urn 
guided in their progress by the fixed principle of pro- 
tecting the equal rights of all, whether they he rich or 
poor. No agrarian sentiment t prevailed among 

them. The honest poor man, by frugality and industry 
can, in any part of our country, acquire a competence 
for himself and his family, and in doing this he feel- that 
he eats the bread of independence. He desires no charit y, 
either from the government or from his neighbors. This 
bill, which proposes to give him land, at an almost nominal 
price, out of the property of the government, will i- 
to demoralize the people, and repress this noble spirit of 
independence. It may introduce among us tho-e per- 
nicious social theories which have proved so disastrous 
in other countries." 

Cong. Globe, When the slave states had withdrawn their represent a- 
861-1862, tjves from tne Federal legislature, the Homestead Hill 
passed both Houses without opposition, and received tin- 
signature of Abraham Lincoln, May 20, 1862. The a< 
charge did not appear in the final enactment, and a 8] 
concession was made to Union soldiers in that they 
allowed to deduct from the five years' < uired 

to establish title, the term of army ser i< < . Homestead 
entries were inaugurated immediately, and proved very 
popular. Quarter section farm- to the amount of twenty- 
seven million acres were claimed ' -07 and 
The revenue from land sales declined as Buchanan had 
foreseen, hut the loss was soon made good in the enlarged 

.'ts 297 

tax-paying capacity of the West To some extent popo- 

:> was drawn from the East, and the value of agri- 

cultural land in tin- seaboard states depredated. The 

population, of wealth, and of manufactures 

tt steadily west. The op|> to get pnMcsiion 

h<ut i -rice attracted hun- 
dreds of thousands of Old World j>eavims to tl 

<cn 1860 and 1870, 800,000 Germans and 
oo Irish cam* inflow augmented 

year to year, until, in the annual immigra 

attained the startling total of 460,000. 

The democratic land policy was fa- 1 to 

the artisan class, since operatives in the East, young 
at least, were free to choose between a farm and a trade. 
Surplus labor was thus drained off t<> tin West, and the 
rate of wages was readily maintained at the standard of 
the self-employed farmer. Speculation in 
land and land monopoly were rendered difficult, since no 

\vo quarter sections one 

of arable land and one of timber land. The average 
size of holdings declined from 109 acres in 1860 t 
1870, and 134 in 1880, and intensive farming became 

The Transcontinental Railways. The project for a Dvfc. The 
railway that should span the Cordilleran K 

D between the Mississippi Valley and the Call- ^_ 
forma coast, and thus serve as chanm 1 f..r the westward 
n as well a> tate trade with 
tlu- Pacific ports, with China and the Far East, had been 
agitating the minds of mm for twenty years before it 
was actually undertake \vas first brought 

before Congress in a memorial drawn up by Asa Whitney 
in IM; 1 his far-set k merchant proposed 

to build a rood fr h of the 

Colin .1 grant of land sixty o>. vn. X. 

' his was to be assigned 

in ten-mile sections as const run ion proceeded, and there- 
sold by the railway company to settlers as fast as 

298 Indus! > '/T <>/ the Unit 

a Railroad 
to the 

thry arrived. " I 1 : proposed to establish an entirely 
ton of settlement, on which tlr hopes of success 

re baaed, and upon which all depend a the 

line of tin- road would, as soon Bi hi> hu-e or cabin was 
up and a crop in. tind employment tin- road ; the 

season, when his crop will have riprnrd, there would 
be a market for it at his door, by those in the >ame >itua- 
U him>elf the season before; if any surplus, he would 
1 at low tolls to take it to market ; and if In- 
had in the fir e paid for his land, the money would 
go back, either directly or indirectly, f<r labor and materials 
for the work. So that in one year the settler would have 
his home, with settlement and civili/ation surrounding, 
a demand for his labor, a market at his door for his produce. 
a railroad to communicate with civilization and markets, 
without having cost one dollar. And the settler who might 
not have means in money to purchase land, his labor on 
the road and a first crop would give him that means, and 
he too would in one year have his home with the same 
advantages and equally independent." 

Whitney estimated the cost of construction at $50,000,000, 
and this sum, together with running expenses for tin- 
initial years, he ex|>ected to realize from land sales, The 
road was to be a national highway, operated in the 
public interest, and the rates charged for transportation 
to be merely sufficient to cover current expenses. 
Whitney advocated his patriotic project on the platform 
and in the press through the length and breadth of tin- 
country, making modi locations in his plan from time to 
time with a view to securing the support of influential 
r>t route was drawn from Milwaukee through 
rie du Chien, Wi>cnsin, to PorJIfcd, the 

second connected Prairie du Chien v. -ma; the 

third, in deference to Southern interests, was to rui 

phi- thn>u'j : 100. Hills 

embodyi and other routes came before Co: 

n v session in the last decade before thr 

Il?46-si9. War, but sectional feeling ran high. Southern repre- 

.'// 2OO 

*entatives advocated a line from Charleston through 

miiuTNof California and 

la clamored for a central route via the Salt Lake 
is to Sacrani- i*rty and all 

pul)li> or of a transcontinental 

road , strong enough to defeat 

e.u h -jwt itu mr.i-'viM u:it ;i lh< K ; - .' i.i .in j >.irt \ * .i::ie ii:t- > 
full >nal go\ 

tiactmcnts of 1862 and 1864 Congress chartered the 
icilic Railroad Company and authorized the con- C! 
of a road from Omah iy west to Ogden. 

proposed uith the Central Pacific 

ay f already incor; he state - 

i roads to Sioux ( n\North, 

Kansas City ; hut the trunk line made direct connec- 

1 companies 

ay alonj: >jccted route 

use), together v. ith >uih lands as might be needed 

iis, workshops, etc., and the |>ri\ilege of taking 
timtx md earth, as might be required for the track. 

To d< rcss offered liberal 

grants from t) he railroad lands were 

assigned, as < roceeded, in ten alternate sec- 

. width, on each side 

the roadbed, grants previously made and squatters' claims 

-e, exec] > ne days 

the passage of t .stead Act, Congress au- 

- away of 23,500,000 acres of the public **' 

corporations, and inaugurated a new 
phase of land monopoly. The reservation of alternate 

actual settlers was intended 

to secure the jK-.plt > rights, but the ultimate effect was 

road lands, which were usually 
withheld I mm sale. 




File. Ch. III. 

* r.,.1 

i of 

Land in Aid 
of Railways, 


Loads d 
tfai ui'i 

prise by offering to guarantee the bonds i^ued by tin- 
panics to the amount of $65,000,000. The bonds were to 
run for thirty years at BJ n-tituted a -cmml 

mortgage lien on the railroad property. Thr fi] 
interest was paid from the t"nit< . and t he- 

govern nu-nt stood sponsor for >uh>erjuent int. 
as well as for tin- payment of the principal. Thu> ind< 
the bond- were readily disposed of at public sale. < 
Struct ion proceeded rapidly. Irishmen were imj)orted 
as laborers on the eastern division- of the road, while 
Chinese built the greater part of the Central IV 
The entire line was in operation by iX(><>. The initial 
passenger tariff of ten cents a mile was so high as to be 
well-nigh prohibitory. Congress had reserved the right 
to regulate fares and freight rates as soon as the net earn- 
ings should exceed ten per cent on the investment, but t he- 
rates were reduced by the management long before this 
happy consummation was attained. 

With thecloseof the- war and the disbanding of the armies 
the demand for transportation facilities to the new West 
even more urgent. In the decade following the char- 
tering of the Union Pacific, the bulk of railroad building 
: of the Mississippi River. In the first thirty 
years of railroad history, construction had followed on 
the heels of trade, and routes were determined by prospect 
of profits, but the Union Pacific Railroad inaugurated a 
new epoch. If the West was to be- developed by free labor, 
railroads must be pushed in advance of population, in 
advance of the organization of state governments. The 
costs of building were enormous and the traffic light in 
proportion to distance covered. These great underta 
could only be set on foot by aid of th< W govern- 

ment. Within the ten years following the grant to the 
Union Pacific, 215,000,000 acres of public land had 
assigned to various railroad enterprises alway- on con- 
dition of completing the roadway within a 'erm. 
Several of th re forfeited by noncompliance, 
but the lands secured by railroad corporal i 

.Its 301 
to 102,000,000 acres, nearly half the sum tola .irm 

ar.-.i r.intr.l un.irr lh. H,, mi-trad .\it. 

sacrifices, economic and son :ved in the Martin. The 

hut thr KAiii* to tlu- x-tllrr*. ;in .ifge ~ 

v lands at far less cost in time and money and 
in physical wear and t- he days of t) 

^rcat trunk lines 
rendered it possibi Is to Ea>- 

M within 
reach in ami lumljt-r tamps <i thr KK.kies. 

;ip to tl; 

Whit: im was I irills 

and sheetings 

* h;iM-tt- .in. I "th r nuusulai turc> f the I'nitnl M.itr- m.iy 
be transp* 

in thirt\ 

The Crisis of 1873. -11 1 pros- Burton. 

-iness panir ami u 

iness had iVlt 

MrifTs and war i>riccs. In ^ 

ITS lnrrwr(i hi-avily 

dnthini; farti>- - mills and al>. .uul >il 

>rospects for disposing ^ ' x . 
of the goods. Th- . IN of th! 

ere over] h f in- 

v, a general glut . 
in j)Hccx. 

> capsize 

>. t'naliU- to market Rhode*, 

and wr :>ankrup f c ck.XL 

3O2 Indus t 'oty of the United Stales 

influence of industrial depression is seen in statistics oi 
manufactures for the decade. 

Another form <>: dv mania v, ented in 

Western railroads. The liberal policy of the government 
gave promoters a basis on whu h to solicit >U!>M riptions to 
Stocks and bonds that could brin.n no return lo the pur- 
chaser. The >um> invested in railway construction during 
the decade following OH the chartering of the I'moii Pacific 
aggregated more than a billion dollars. The rail; 


Relation of Imports, Sales of Public Lands, and 

Railroad Construction to Financial Crises 
Silet of Public Lands _ ^<ilag of Railroad Conitruction 
Amount of Importt f The Crii Years 

built between 1867 and 1873 amounted to thirty-two thou- 
sand miles, a sum total exceeding the total mileage of 1859. 
An undue proportion of the available capital of the country 

-unk in roadbed and rolling stock. Tnable to meet 
the interest on the bonded debt, much Lett provide for 
the payment of the principal, many of these optimistic 

l>ortation schemes wer< into bankruptcy. 

i'iHt>mif Causes and Rtsntts 303 

The Homestead Act contributed its full share to the 

era*.* .t The pioneer fanners, eager to im- 

'perties, borrowed from Eastern 

capitalists, mortgaging their lands as seen: I hey, 
>s than the railroad companies, commr mis- 

take of sinkin ts more money than they 

; make good out of surplus products for years to come. 
. i raw ay rcclose the mortgage 

:i.l in lieu <>f j,.i> ii in it an asset that could 
..i^h. thus a Kansas mortgage 
bccai <r a losing investment The m< 

resources of the business world were further strained by 
disastrous fires and the rebuilding of Chicago (1871) and 
of Boston (1872). 

two years prece y was scarce 

ami the rate- the autumn, Bakof 

when farm products were being moved to 

r was a deficit ore than a mi 

dollar .ink reserves of New York City. In Septem- 

ber ot anciaJ operations were paralyzed by a series 

:r- : the leading bankers of had 

made unwarrantable advances to various railroad enter- Sherman. I. 
prises and were forced to close their doors against de- 
positors. The Brookl \vas hea 

(Ml with the New Haven and Willimantic Railroad; 
the Mercantile Warehouse and Security Compa 
the Mis>- .nsas, and Texas; Kenyon ( 

Company with the Canada Southern; Fisk an 
A it h the \".mlerlilt Roads ; Jay Cooke and Company with 

M assign: Jay Cooke, 

the t day, wa- il for a general xx 

collapse. More than : -and failures occurred in 

> ear with a loss of $328,500,000, and the nun 
of bankruptcies steadily increased, till in 1878 the appalling Rhodak 
> was reached. The industrial deprcs 

re fatal Vll.Ch.XL 
t priMiu. the failure- 

untry at large aggregated 47ooo and the money 

304 Industrit 



OuL ' 



I..HM! an.i 


ch. vn. 

loss, $1,200,909,754. \vhilr million workmen 

were thrown out of employment !y tli- down of 

MM enterprises. The CO irtailmenl in 

the demand for goods increased the difficulty of the situa- 
tion, (iradually. however, tin- weight of depfCttiOfl 
thrown - '1 roads and farms began to return 

revenue, mines and mills were reopened, the uncmp: 
found work and were once more able to earn and spend. 
while with the revival of the market for goods, manu- 
facturers took heart and set their engine- in motion. 

The Labor Movement- The engn-> inu proi 
tailed by the Civil War had diverted attention from the 
interests of free labor. The workingmex] of tin- North 
threw themselves heart and soul into the conflict with tin- 
slave power and gladly enlisted for service. The drafting 
of a million men into the army reduced the supply of labor 
to the point where there was work at good -r all 

remaining; but when the soldiers returned to industrial 
life, the labor market was glutted and difficulties ensued. 
Wages as represented in paper currency had risen rapidly 
during the war, and the abnormal re maint 

by concerted resistance to reduction. Industrial 
ditions were more favorable to organization than ever 
before, for the capacity of factories and work-hops had 
been multiplied, and larger bodies of op 
massed in one establishment. Machinery had superseded 
hand labor in well-nigh every field, and the workmen, 
rendered entirely dependent upon capital for employ; 
organized in self-defense. The unprecedeni nula- 

tion of wealth in the hands of a few captains of in<! 
served to further emphasize the antagonism bei 
master and man, so that the necessity for bar- 

gaining was forced home upon employees of every < 

The movement toward union on a natio: had 

been apparent before the close of the war. The Brother- 
hood of Locomoi ;/ed in 1863, 
the Cigar Maker- International Cnion in 1*04. and the 
International Union of Bricklayer- and Ma.-ons in the 

'Its 305 
year 06 some thirty nal trade or- 

u \\..rkiM-men's party the al>- .attel 

slavery, free distribution of lands, and a ten-hour 

-were accomplished facts. The labor leaders of 

K*t bellum era demanded an eight hour day, pro- 

r women and children employed 

iit factories tin id vestigation of labor prob- 

e new la < ment repudiated both the j;: 

;>arties as untrustworthy and 
:ade union* in a common endeavor to better working 
conditions, n< > embers n 

f .ersas\\ \ \.^:.>nal Labo- ('on- 

ion was calta! nore in 1866 and was attended 

ne him. organiza- 

tions in all t). Q three 1- The 

1867 and at New York in 

1868 were even more widely representative. The total 

-arty was estimated in 

.tier year at six hi. >u>and. This 

uency sent represent.; --everal of the 

ires, and was even able to bring som< 
llueme tt> In-ar UJH.II the national government. In 1869 
ress passed a bill 

:> the en. ional 

i;>^ton in 1870, and at 

and wan . in 1872, a 

candi 1 States was 

1. l>ut thi> proved a fa 4 ke. The attempt 

i* leaders to use the orga: as a 

access at !iich 

organized in Ma-ai! .-and 

year the General 1 .issa- 

l>assed a bill 

Lain r sdentinc 

inquiry into the grievances of the wage earners. 


306 I>. 

r </ the 




Com mission, 
VI. 36-143, 

The Granger 













\ , 





__ X 








& ' 



Ch III. 

i i i i i i i i i i i i 

Wages and Prices Prevailing irTthellnited States, 1840-190*0 

Wages Prices 

Base Lin* ( | 840-1 89 1 > for wages and prices, the average of 1 860. 

Base Lin* 1891-1 900 ) for wages the average of 1891; for prices, the average of 1 890- 

Currency Quotations 1860-1879 reduced to equivalent in gold. 

The Farmers' Movement. During the latter half of 
the nineteenth century the agricultural population had 
little in common with the mechanic- and operatives of 
the cities. The farmers were property owners and tax- 
payers, and naturally conservative, and there was no large 
class of agricultural laborers or cash tenants. Kvery 
able-bodied man expected to acquire land, whether by 
a homestead claim or by the slower process of farmii. 
shares. All that the farmers asked was a fair chan 
market their products. Their grievances were the 
mission charges of the middleman who forwarded their 
grain to the flour mills at Minneapolis, their cattle to the 
packing houses at Chicago, and secured the lin - -hare 
of the profits on the transaction. The railroad-. 
over, whose advent had been heralded with unalloyed 
faction, were nov, i with impo-ing exorbitant 

lit rates and fixing their tariffs on the principle of 
-ging all the market would bear. The railroad land, 
sold in extcn-ivc tract- to the highest bidder, came into 
hands of capitalists, who introduced i: and 

'Honiif Cam ^tts 307 

pr.nhu ti.-n .nM ^-, ur.-.l JMCW faffl ifl th.- 

i*. The iutict, levied 

si of m ers, added to the 

cost of groceries, . l.-tlii:,.-. implements, and building ,, IOQ. 
materials, ^1. |>ean market for agri- 

cultural produce. Only the wool growers got a com- 
pensating advantage in the way of f^fryvH prices. Most 
\\ rs were heavily and the 

contraction of the currency, \\ith the const 1 in 

prices, rendered it difficult to meet obligations incurred 


aggrieved fanners began to a: re- 

medial legislation. The Patrons of Industry had been 
organized (1866) to render farming a pleasant er and more Movement, 

They had begun with a 
to reduce expenses by cooperative buyii un- 

ir PHK! ic Granges (so called ndfcy. 

grange or local organization) \\ ^ in the 

Mii-' cy f and they succeeded in Uoo. 

the legislatures of Illinois, Iowa. Minnesota, and Wis- 
consin to fix maximum rates for transportation charges. 
These laws were bitterly contested by the railway com- 
and finally repealed, but th cnt was not 

ui i-tTci t a railroad d< 

in- region served 

was brought i >ince the granger 

laws were declared constitutional l>y the Supn-inc (\>urt, Act*. 
a precede i >1 was clearly established. 

The Industrial Transformation of the South 

For h. the Civil War had inaugurated a new era Schwab, 

of material expansion; for Southern industry, it meant c xn 

i- Confederacy, b* -cene Ga: 

is were bunietl. bridges wrecked, railroad tracks torn 

up. plantations fallen to ruin. < he only marketable Ch. IV. 

308 Initn -N. ^tory 




-. 37 ; 

Ch. 4 

Souls of 
Black Folk, 

Ch. II. 


Sloo' of 
the Negro, 

:K I. 


after the 
Civil War 


crop, had been used for breastwork>, coniiMated. or ren- 
dered unsalable by exposure. The wc-alt! im- 
poverished by the repudiation of the Confederate- rum 
and Confederate bonds; the poor were destitute. 
third of the adult males of tin- white population had fallen 
in battle or returned home invalided and incapacitated for 
work, and the proportion of breadwinners was seriou-ly 
reduced. Slavery, the labor reliance of the old South, 
\va> lo>t beyond recovery. Land had depreciated to half 
its ante-bellum value, and the capital with which to make 
good the devastations of war was not to be found .south f 
Mason and Dixon's line. 

The disasters of war and reconstruction did not fall on 
the white population alone. The emancipated bi 
suffered for want of food, clothing, and shelter, and thou- 
sands of negroes perished of hunger and disease. Tin-re 
is reason to believe that the loss of life was four times 
greater for blacks than for whites. The Freed men's 
Bureau did much to relieve this appalling destitution and 
to set the freedmen on the way to self-support; but it 
was obliged to work through the military organization. 
Army officers, however well intcntioned, are hardly fitted 
to deal with a complicated economic situation. 

The Labor Problem. The twenty years following the 
downfall of the Confederacy witnessed a change in t he- 
industrial order of the South that may fairly be termed an 
agricultural revolution. With emancipation, three million 
laborers passed immediately from a state of dependence 
and rigid surveillance to absolute freedom. The economic 
tie between master and slave was suddenly br< .ken ; t he one 
was forced to seek laborers, and the other employment, 
in the open market. Both were unaccustomed to the wage 
relation, and both found difficulty in estimating in terms 
of money the services that had hitherto been rendered for 
mere subsistence. The freedmen, eager to realize the 
blessings of liberty and esteeming labor a badge of sia 
wandered about the country in M-,tr<h of plea-ure. and 
rapidly gravitated to the towns. They worked only under 

tits 309 

followed by a week of idleness. 

handicapped by the losses of the war and Du Bok 
command ready money, advanced rations to 
laborers but postponed the payment of wages till the 

over the money due, and the negroes grew suspicious. 

unsatisfactorinesf of the hiring system is evidenced 

i-> the d- .vage rates from $137.50 per year in 1860 

to $i.- , in 1867, and $100 in 1868. The plantation 

system, profitable only with gangs of cheap laborers 

10 absolute control, broke down under these 


grow cotton with borrowed capital and 

wage labor having failed, landowners began to lease estates 

on shares. Tracts of from t y acres were 

reliable negroes on varying conditions. 

l! the landlord furnished seed, mule, plow, and rations, he 

was entitled to two thirds the rrp. < other hand, 

plied food, he kept half the crop. If he 

fed himself and owned stock and implements, he kept two 

ton grown. A negro who had acquired a Washington, 
.'ence and industry mi^ht secure jj ^ !, 11 * 
dated r. >tton or money and thus be o 

free from supervision. Planters were ready to sell on 
easy terms considerable portions of their h< r>u Bob. 

bered estates, and in a series of good seasons, with 

mitfht clear enough the 

By 1874. within ten years after emancipation, the 
negro farmers of Georgia had thus acquired 338,769 

poor whites, too, made good use of this chance to Bank*. Uad 
get possession of land and so secure op|x>rt unity for M-lf- Tm 

rt. The necessities of planters combined with the jo-77. 
ami.;- ndless laborers to break up the great estates, 

and plantations crumbled away into little 

The tendemy is evident in the of farm 


Industrial History of the Vnitt-tl S\ 



Sol t ill k \ 





( 1 MkAL 


\ C A 

7 52 R 




O' L 'O 













,oS. 4 


The reconstruction of agriculture was a -low and diffi- 
cult process, but pluck and patience finally led in 
rendering the South more product ivc under free than under 
slave labor. Dead lands iaimed by use of 
tilizers; waste lands were brought under cultivation; 
machinery and scientific methods were brought to bear 
in the growing of cotton, su^ar, and rice. Evidence of the 
losses of the war period and tin- irains of i! uent 
decades may be gathered from farm static 
















73, 635,000 















I'MM ii 

Eh m 






SOI in 

( 1 MK\L 

\\ i -'II KX 

1860 . . . 







1870 . . . 







1880 . . . 



1. 00 




1800 . 







1900 . 







,'ti 3 1 1 

Development of Cotton Manufactures. The South'* M** ubor 
i. n tin- mannfactm !' cotton goodi had bog ! 
been realized. T) 
was water power in 
abundance, free all 
i id, the 

raw material was t v .-..; 
be had dim 
the cotton gin, with 
no commissions 54-00- 

charges added, and 
labor wa> in- 

ml will 

ergies of the poor ' 

-.I was 
secured from the 

N md from 

To FALL Loci abroad, and the 

South MI I:JM.II the 

tcxtil- ^ood earnest All along the " fall 1 

cotton mills were built with , nal rapidity, an.: 

mountain jK-opIc were gathered int. ^es. It 

was cheap labor. f..r the standard of living wa> : 
and fuel, food, and shelter cost lit cr, there was 

rejudicc against the employment of women and chil- 
cln-n and no demand : r hours or prohibitio: 

work. Little could be accomplished in the war 
decade, but between 1870 and 1880 great strides were 
made. South Carolina doubled the capacity of her mills 
ami the value .f her output. -th Carolina and 

Georgia were not far bchir housand 

people found employment in the S cotton mills, 

and their pnxlurt was near ;rth that of \ew Eng- 

land. It became apparent that the \\ hite laborers had prof- 
ited more than the blacks from the edict of cmancipa: 

Itnius; tory of the L'niti 










VALUE or Ptooccx 

1870 ... 




1 6 741 




16.41 c 

41. 11 





Other latent resources were developed by Northern 
capital and Northern entrepreneur^ The coal ami iron 
deposits of the Appalachian I; \ploit e<l with 

modern machinery; the phosphate beds of Florida and 
South Carolina and Tennessee were opened up. and the 
preparation of fertilizers became an important industry; 
thesandy levels of Florida were cove red with fruit orchards ; 
the bayou lands of Louisiana and Texas were drained and 
irrigated and converted into rice fields more profitable 
than those of South Carolina. 

The Protective Policy 

NOTWITHSTANDING reductions in excise and customs 

i the decide following the Civil War, the 

national revenues increased from year to year, until in 

'1883 the Treasury reported a surplus of $145,600,000. 

This was of the growth in wealth 

and population and in the consequent demand for the 

commodities subject to tax. The receipts i- <>ms 

duties on sugar, silks, woolens, and iron i arcs 

were rapidly augr as also from the excise- 

:- and in.imif.u turcd tobacco. 

could not U- a]. plic.! to the re- Dewy. 

demption of the outstanding hills of credit for fear of Kin ri * J 
.- umbrage to the Greenback part\ 
;i of tin- x< bonds without curtailing the 

national bank> 1 : .nciers recom- Sunwood. 
.rthi-r reduction of Federal taxes, and thi* 
was > undertaken in 1883. The more obnox: 

of thr remaining excise taxes were repealed, e.g. th<< 

:c-s, patent medicines, and jK-rfunieries. savings-bank 
deposits and bank checks, and the charges on chev 

obacco were reduced by ha 
.ese several industries of a considerable burden 
\ith general approval; not so the at' 
the customs duties, A Tariff Commission, ap- Rcit.althe 
1 in 1882, submitted an elaborate report recom- ^S^** 
ag general reductions of 20 and 25 per cent on raw is**. 
:als and articles of necessary consumption. The 

314 Iniinst, United > 

Sherman, II, 

I 'cwcy. 




Kept, of 
Tariff Com., 
1882, 330- 
763-764, 838, 
IS33, IS34, 

fept Ifam 

Bureau of 
Labor Slat., 

Forty Yean 
of Amer. 

Mican majority in the House of Kepre-entat i\ < 
fused to inaugur;. . and tin- n :ialiv 

introduced in tin- Senate. a> an amendment to ill- 
ie Bill sent up from the House. The ai 
ment was only accepted by the latter body after 
able modification in tin- interest d ion had 

admitted. Thr duties on coarse and cottons 

were reduced, -hue thoe manufacr not mci 

by foreign competition. but charts on the in- 
were actually raised. Iron and steel manu 
taxed not quite so heavily as in iS;^, hut the duty on pig 
iron was reduced in proportion. The argument that 
American laborers must IK- protected again-t the " pauper 
labor" of Europe by high import duties on foreign ; 
ucts had been brought l)efore the Commission by em-. 
ployers as well as by representatives of trade uni<n>. 
American workmen were receiving on an average one 
and one half times tin' KnghVh wage, twice that paid in 
Belgium, three times the rate customary in France, Italy. 
Germany, and Spain. The counter argument that Ameri- 
can prices raised the cost of living to two and tli 
the European level, and that the enhanced profits accru- 
ing from these prices were not necessarily applied to 

s, did not have much influence with this Com 
The interest of the agricultural >ection- .dily kept 

in mind, the import duties on beef, pork, lard, cheese, 
butter, wheat, corn, and oats being maintained. v 
these commodities were not imported except from N 
Scotia and Canada, the New Kngland farmers alone rcali/.ed 
any benefit from such duties, while the wool gr 
the Middle West were outraged by a repeal of th 
valorem duties on imported wools. 

Crisis of 1884. The financial panic of 1884 wa- 
tributed to this very moderate abatement in the protec- 
tion accorded to manufactures, but it would be difficult 
to prove that factory or mining i udy 

affected. The cri^i- originated in Wall Street in the 
failure of four large banking lirrn^. The collapse of the 

( -.:. tt:f ' ' ; / '/ ' .' //: . 315 

Second National, the Marine, and the Metropolitan banks 
\\ it hin one disastrous week was due to no general depres- 
^honest management and unwarranted specu- 
The unuMial *tringcm:y in the money market was ***** 
occasioned l>> the displacement of gold by the n< 
coined silver, and by the sinking of vast sums in We* 
farms and railroads. The transcontinental roads had not 
^' basis, .1 <-st* of agricul- 

re threatened l>y falling prices. Imj. - 65-00. 

brought no benefit t< the farmers or, since 

their domestic market was overstocked with produce. 
The wheat crop of 1884 was the largest that had ever u.s.Sutfaci- 
been harvested, and fell to ir cents a ^Ab*mt. 

.If that . years bet n I [.rice ' 

did not cover the cost of production, and many farmers 
were rui: inubilit < ulturists to meet Carat. 

their ..Mirations to Eastern capitalists and to purchase J 
the products of Eastern mills and workshops, extended 
and prolonged the industrial depression, and the glut of 
the market became general. 

The McKinlcy Act \\ Democrats came into 

1 <>f the national g< +4), several half- 

hearted attempts at tariff revision were made (f. 
son of Illinois urged a .< r . mt horiaontal reduc- 

jt the party as a whole was 
tin- ;x.i issue was CH. xi. 

(litini: President Cleveland in his annual 

message of December, 1887, when the exces> had 

i $100,000,000 a year, and the taxes 
r abated. The President recommended xix. i'i i. 
that t lutics be reduced, not arbitrarily and by a 

sweeping horizontal cut. t>ut with due regard to the 1 
ness interests involved. Established industries should 
sudd* prived of advantages on which calculations 

cess had been based The welfare of mechanics and 
operatives must be kqn in mind, hence tariff 
should aim t<> rrdmt- the cost of living without curtailing 
the opportunity for employment or forcing any redut 

316 Industrial //; 







sist Cong., 
ist Session, 
Sen. 1 
Doc. 158. 

of wages. Tin- interests of farmers and farm laborer- 
even more weiuhty. ^ince nearly half the total population 
was represented in this class. Unprotected by import 
duties, the prices of most farm product :i<litiom-l 

on the foreign market, and this must not be jeopardized 
by discriminating tariff schedules. 

The surplus and the tariff were the main question 
issue in the campaign of 1888. Th- result of that election 
was an unprecedented victory for the Republican party. 
Accounts may be balanced as effectually by i 
expenditure as by reducing revenue. The former expedient 
would involve the party in no embarrassing antu^on 
while it afforded opportunity to strengthen political 
allegiance; hence Congress extended the pension list to 
the point where the annual appropriation on this ac- 
count would speedily exhaust the surplus. The excess 
revenues thus disposed of, the question of tariff revision 
taken up. In May, 1890, the Committee on Ways 
and Means (William McKinley, chairman) reported a bill 
proposing a general increase of duties. The measure 
adopted in House and Senate by a strict party vote, only 
three Republicans, representatives of the farming interest, 
voting against the bill. Higher duties were imposed on 
ner grades of cottons and woolens, on iron and steel, 
glass manufactures, etc., but the rates on raw materials 
were not reduced. A serious effort was made to extend t he- 
benefits of protection to farm products, the war duties on 
wool were restored, while heavy imposts were laid on 
eggs, potatoes, beans, barley, wheat, corn, tobacco, fla\, 
hemp. The tobacco growers reali/ed some advantage 
from the exclusion of the high-grade leaf from Cuba and 
Sumatra, but the grain growers were unaffected, since no 
cereals were imported. James G. Blaine asserted, and 
truly: "There is not a section or line in the entire bill 
that will open the market for another bushel of wheat or 
another barrel of i>ork." There was, on the other hand, 
reason to fear that our e policy might -eriously 

curtail the foreign market for our agricultural produce. 

Contemporary Problems 317 

he hope of inducing foreign nations to abat 
reta iriffs, Blaine urged upon Congress and finally 

MCUred the so-called retiprmily ilau-*- f the y Tariff Actol 

tates was empowered 
t" restore - on sugar, molasses, tea, 

.use of any < 
charges on our produce (agricultural o vise) he 

unreasonable and unj 

media hU threat was the nc. rade 

agreements with Brazil, San Domingo, ton. Li* 

da, Sah igua, and 

luras. Of European /ary and prodty. 

the German Kmpire alone accepted ur oiler >f reciprocal 
o.iMim-r* i.t! idvaatafe, 

The enactment was notable for the appearance of cer- 
tain business combinations as intliu-ntial factors in the 
determination of duties. The binding twine t- 
example, requested ad < > and a half cents a pound 

The tax was protested by the fanners of 
y>n and the West, who were using great quantities of 
sheaves, and their representatives re- 
fused .11 unlr>- twine was placed 
on the I'm- li>t. This confli- rest was compromised, 
vas fixed at st hs of a cent per jx)und. 
The American Sugar Refining y urged that a 
t-ntial of profit be secured their in.: reas- 
ing the duty on refined sugar or )>y the repeal of the tax 
on their raw material. The former device was protested 
by consur c sugar had become a necessi' 
to the poor ; the latter was protests i rane planters 
of Louisiana and the beet farmers of the ntt* 
The duty on refined sugar was reduced from three and a 
half cents to on? half a cent a pound, while raw sugar was 
[tied free; but full compensation was accorded do- 
mestic producers in a bounty of two cents a pound on all 
sugars grown in the United States, The only loser in 
bargain was the government. be bounty charge 
ntcd to $6,000,000 per year and the remission oi 

318 Indus (riii I History <>/ the I'nitcd .s 


Prices, and 

'I r.i:-.-j.rt.i 

lion, I. 8-14. 



II. Ch I.XV. 



and Willis, 




duty cut down tin- annual revenue by $55,000,000, tin 

concession to the >u^ar trust ot il. 

The annual surplus was speedily converted into a deficit 

The Mi Kinley Act proved highly unpopular, for p: 
and cost of li\in,u r increased with little .it in;: ad 

G in wages. The farmer 
ment in the market for their prodiut-. Wheat fell from 

v-four cents a bu>hel in i.s<,o to : 

1894, and prices of corn, oats, rye. and barley declined 
in the same proportion. The \voolen manufactu: 
plaiiu-d that the protection given them did not onVet the 
enhanced cost of their raw materials. 

The Wilson-Gorman Act. The tariff wa> the dominant 
issue in the campaign of 1892, when the Democrat won 
the election and Cleveland was returned to the pre.-id< 
He immediately intrusted Wilson of West Virginia with 
the task of devii-in*: a tarilT schedule that -hould embody 
the Democratic doctrine of free raw materials and moder- 
ate ad valorem duties on finished product-. The Wilson 
Bill placed wool, iron, steel, coal, and lumber, together 
with sugar, on the free list, and proposed a proportionate 
reduction in the duties on the corresponding manufat i 
The necessary revenue was to be derived from duti< 
tobacco, spirits, playing cards, etc., but le>t tl 
should prove insufficient, a tax of two per cent on in< 
above $4000 per year was added by amendment. 
revival of an emergency war measure was opposed in the 
moneyed sections of the country, but enthu>iastically 
ported by the Populists of the South and West. The 
Wilson Bill passed the House with no further amendment ; 
but in the Senate, where the Republican- had control, it 
met with serious resistance. W r ith the aid of Senator 
Gorman, amendments were adopted imposing duties on 
low-grade sugars, on wool, coal, iron, and other raw ma- 
terials, together with compensating rates on refined sujrar, 
woolens, and a long list of manufactured article-. When 
the mutilated bill wu returned to the House, that body 
refused to concur. The questions in dispute 


ivail, and thr bill was in danger 
'efault, \\hen the Democratic leaders of the 
* agreed to accept the Senate amendments, except 
the wool tax, in the hope of later enlarging the free I! 
separate enactments. Thus the Wilson-Gorman Bill be- 
though disapproved by both parties and meeting 
the neet i range of 

duties was reduced fr t average of 

49.5 | . an average rate of 39.04 

< Dingley Act. - The Rq>ublicans won the ele< 

he currency issue, but President M< K 

regarded ry as an indorsement of his prote 

f Maine was commissioned to prepare 
the taritT bill that was submitted to the House of Repre- 
sentatives in an extra sessi immedia- 
the' :. The bill was rushed through the 

D proposed by the Comn 

and Me. i r Senate parties were more 

equally divided, it met \\ith n resistance. The 

nittee. t the measure was referred 

. was made u iblicans, 

Democrats, a; I'opiilNt. and thus the balance Tariff 

ver rested with the latter. \evada, 

ded in iniorjM. rating in ti d bill a series 

of amend ranchers, 

and lumbermen of the Far West. A <: 

IH.UIU! on citrous fruits was introduced in response to the 

demand- range growers of California, one and one 

cents a pound on hides was offered as a concession 

to the cattlemen of the plains, while a protective duty 

on carpet wools was a hecp 

ranches ana and Idaho. The duty on lumber 

($2 per thousand feet) served to protect our lui 

:ls again- .tion from Canada. The bill, when 

ly passed, accorded pr >iness 

<>t that could profit by : rates higher than 

been adopted in any previous taritT. The average 

range of duties was 57 ; 

320 Industrial ';///<>/ States 

Truth about 
the Trusts, 

Basis of 

Bureau of 

No. 51, 53. 

v Tariff met with siTiui> criticism on the 
ground that it served to promote industrial combinations. 
It was asserted that the representatives of variou- HUMS 
brought the inllucnce of ilh to hear upon the 

congressional delil The tin plate n>ml>in. 

for example, set ured a renewal of the rates of the McKinlcy 
Act, although the tin mines in whose interest the duties 

originally proposed had failed to materiali/.e. The 
tru>t extorted a differential of three fourths of a 
cent a pound, two and one half times that allow,-;! under 
tiie \ViUon Tariff. Kven the protection intended to ad- 
vantage the farmers and other raw material prod-. 
accrued to the centrali/.ed industries. The enh; 
value of American hides enriched the l>ecf ; 
tanning had become a by-industry of the slaughterhouse, 
while the duty on lumber insured monopoly of the dom< 
market to great timber companies and hastened the 
ruinous exploitation of our forest lands. The conllict of in- 
terest between manufacturer and producer of raw material 
induced further critici-m. The woolen manufacturers 
protested the high duties on wool, the shoe manufacturer^ 
opposed the tax on hides, the paper manufacturers de- 
manded free bleaching powder; but these interests 

usually able to make good the enhanced cost of 
raw materials by advancing the selling price of their prod- 
Certain great business combinations, such as the 
United States Steel Corporation, reali/.ed enormous pr 
from the protected market. The output of iron and steel 
developed to phenomenal proportions under the Dingley 
Tariff. High prices on domestic sales enabL-d our manu- 
facturers to export agricultural implements, structural 
iron, steel rails, etc., to foreign markets, and there to 
underbid their I.ngli>h and German competitors. But the 
prosperity of the manufactur- ! at the 

expense of the consumer. The prices of all the essentials 
that enter into the cost of living food, clothing, fuel, 
building materials, house furnishings, etc. have 
steadily since 1897. The total rise in prices amounted, in 

Contemporary rrvbltms 321 

in is/, Hamilton'* assumption thai man ufac- 

the cost : production held good in an epoch 
i trial monopolies were unknown, hut the 

lided with a 
all the leading industries 

shared. A failur. .reign wheat crops in 1806 and 

1897 created a demand for American grain ughl 

up t! V 3 cents a bushel in August, 1896, to $i 

igust, 1897. A phenomenal crop in 
year brought $500,000,000 hands of the producers. 

This me -s of 

Kansas and Nebraska began to pay oft their mortgages, 
and the enhanced purchasing power of the agricultural 
sections was felt in renewed demand for a great variety of 
manufactured goods. The factories that had shut down 
or curtailed output during the of depression began 
full time, workshops and rolling mills were re- 
opened, operatives and artisans found ready 
mcnt at good wages, and the freight capacity of the 
roads was taxed to transp <>lume of 

traffic Imp*' :V11 oil in the years immedi 

.ving the Dingley Tariff, but foreign merchants ra; 
recovered th< can market until the initiations 

of 1003 passed the billion dollar n Kxport figures 

reached $1,032,007,600 in 1897, and the volume steadily 
n year to year. (' 1008, 

24.5 per cent were foodstuffs, 46.86 per cent raw materials 
of manufacture, and 27.77 I* r ccnt manufactured goods, 
iff was in force twelve years and thereby 
n of being the longest-lived tariff in 
our financial history. During this period changes in 
axis of product:. :: in natural resources, and in market 
> had so far altered the st x-tcd 

industries that some revision of the schedules seemed in- 


322 Industrial History of the I'nitc,; 

evitable. Improvements in machinery and in \\on 
organization had brought tin- . ;re to the 

European level, but the cost of certain 
as wool, hides, and furl was rising, tin- market for many 
of the necessaries of life was controlled by combinations 
amoni: the producers, while the consumers, the bulk of 
the population, had grown re-tic under the ever ii,- 
ing burden imposed by advancing pri( C& The first formal 
protest against the Dingley Tariff \va> enunciated 
conference of representative men from the Middle \\ : 
called at Denver in 1905. It wa- therein averted that 
the Dingley rate- had induced retaliatory legislation mi 
the part of Germany, France, and Canada, that threatened 
the serious curtailment of the markets on which the 
Western producers depended for the disposal of their sur- 
plus crops. Revolt against the established order was 
carried into Congress by representatives from Indiana, 
.1, Wisconsin, Kansas, Nebraska, and Minnesota, and 
their words were eagerly affirmed by the non-pro: 
classes the country over. In the presidential campaign of 
1908, both the Republican and Democratic party plat- 
forms declared for reshaping of the Dingley schedui. 

The Payne-Aldrich Act. The party in power favored 
a " revision of the tariff by a special session of Coi 
immediately following the inauguration of the next 
dent," and asserted that " the true principle of prot 
is best maintained by the imposition of such duties a 
equal the difference between the cost of production at 
home and abroad, together with a reasonable- profit to 
American industries." The Democratic platform fa- 
immediate revision of the tariff by the reduction of im- 
port dudes, notably on the necessaries ( ,f life, and pro- 
posed that " articles entering into competition with tnM- 
controlled products should be plated upon the free li>t." 
The campaign was an exciting one. The old-time Repub- 
lican stronghold, the Eastern indu.str! 
vania, New York, Massachusetts, and Rhode I>lan< 
reenforced by new manufacturing centers in Illinois, \Vis- 




, ami Muhi-.m. irboM r< j,rt-<-nt.iti\ t- determined 
to " stand pat f..r the old regime. The citizens of the 
t ain states, Washing! > .- '. I daho, Utah, and 

ana, rail ic suppo: 

l>per, and beet sugar. Even Missouri sent 
present* lives to secure proto her 

nines. California was opposed to duties on lui 

goods, but was eager to obta 
lional protection for 1 and wines. The stanch 

the influence oi irir^. the 

. manufactures, phosphate mines, and |K-troleum 
wells that clamored for protect 
consumers, though he popula* 

i. \\rr not M> \\ell organized and therefore less 

The overwhelming Republican vi er, 

1908, assured revision on conservative 1 < House 

tives had rejected a prop* r a tariff 

commission that should make an impartial study of the 
comparative cost of produi and abroad and 

so indicat< casure of m . the several 

schedules, but had empowered A'ays 

Means to collect information in a series of t 
hearings. During the- u inter pu)>lic hearings were held Tariff Hr- 

tshington and a mass of testimony was accumulated, 
furni>hnl i..r the most part by mai rs and other 

interested parties. The extra session convened or 

XDQ, lasted until August, and the tariff was the sole 

1 as reported by the ( 

< of Ways and Means (Sereno Payne of New York, 
chairman) proposed a 

rable reduction of the duties on manufactures 
and on free raw materials, i.e. coal, iron ore, a: 

i>t to put lumber and li>t had 

failed because md- 

ious rates had been raised a) 
Dinpi :n the interest of influential manufacturers. 

324 Industrial History of the United /</ 

The " insured t Republicans from the Middle \\ . i 
strove to amend the hill in the consumer's interc-t. and 
did succeed in removing duties on the prod net- of ; 
leum, but the hill as it passed the Hou-e was di-tinc -tly a 
protective mea-ure. Meantinie Senator Aldrich, (hair- 
man of tlu- Finance Committee, had heen preparing a 
hill more in keeping with Republican tradi; 1 this 

introduced in the Senate a- a -ub-titute for the I 
hill. The Dingley rates on petroleum product-, twenty- 
five cents per ton on iron ore, sixty cents per ton on 
$1.50 per thousand feet on lumber, together with many 
well-concealed advances on diverse manufactures rendered 
the Aldrich bill as it passed the Senate, a more effectively 
protective measure than the Dingley Act ii 
Willis. The House rejected the Senate bill and the Senat. 

jected that sent up from the House, so that both hills 
with the mass of amendments attached wen i to a 

Joint Conference. Here there was a veritahle tug of war 
(July 12-29), but when, exhausted by the fatigues of a 
midsummer session, the conferees were about to 
upon a measure that embodied some of the worst features 
of the rival bills, President Taft intervened. He inti- 
mated his determination to sign no measure that did not 
provide for t^e consumer's interests, and urged i 
tion of coal, hides, and lumber to the free list. Under 
executive pressure the most obnoxious schedule- were 
hastily revised within the limits defined by the or 
hills and the numerous amendments thereto; the duty on 
iron was reduced to fifteen cents per ton, that on coal to 
forty-five cents, the lumber duty to $1.25 per thousand 
feet, while hides were admitted free. The I drkh 

Bill passed the House on July 31 and the Senate on 
August 5, and was signed by the President on the same 
day. In the official statement of his reasons for signing 
the bill, Mr. Taft asserted that it represented a substantial 
'-ion downward, that with the exception of the duties 
on " whiskey, liquors and wine--, -ilk- and hiirh class 
goods, all of which may be treated as luxuries and proper 

' 3-5 

subjects of a rr\rimr! ' there were few increase* in 
rale*. The admission of tobacco and of three hundred 
thousand tons per annum of sugar fror -Hippinc 

Islands duty free, was an act of justice in which he took 
woolen schedule where the Dingley 
rates were maintained, although confessedly far above 
rates necessary to manufacturer against for- 

eign com; t h- President regarded as the " one 

the Mil." 

he rates imposed in the Payne- Aldrich 9. 
I lingley average, madr Finance Com- 

he customs house experts, and 
!> the pul.iu press, failed to demonstrate any substai 

been an average advance of two per cent ad valoren 
goods imported; its defendants claimed a redi: 
from one and a half to two pt 

cost of production at home and abroad, so much talked 
of dv; campaign, was not th< ning issi: 

congressional debate, since tlu secure adequate 

h difference had been 

fealeti leaders :' th- party in JX>\MT. Senator 

11 for .1 preli- had 

been voted down although indorsed ! .nal 

irers Association, and tlu the new 

r a Tariff Board was shorn of all significance by 
eliminating the function of investigation. The evidence 
subn the German y ^ to costs of pro- 

published until 
Payr Hill had reached the final stages. 

steries of tariff-making were n< 
1 than in this most recent attempt all the 'J 

ads of a widely diversified const it u 
the o rests of mam and consumer 

balance between the producers of raw material 
and finished prod us example \va> 

M. Paper an: v, ilp. In 
:orous campaign on the pan of newi 

326 Industrial History of //'/< <';/:/,,/ Sfa 

and publishers again-t the excessive import <luti< 
paper, the powerful business combinations in control of 
thi> industry were able to resi>t thoroughgoing re\ 
Early in 1008 the House of Representatives had appointed 
a select committee to investigate tin- paper manufacture 
and consider modifications in the dutie>. They n 
careful and impartial inquiry and brought in a report to 
the effect that the co>t of production \va> M>nn 
greater in this country than abroad, together with the 
recommendation that wood pulp be tran.-ierred to tin- 
free list and that the duty on print paper be reduced from 
$6 to $2 per ton. The recommendations of the committee 
C adopted by the House, but in the Senate the duly 
on print paper was raised to $4 per ton. The Joint Con- 
ference agreed upon $3.75, and stipulated that the duties 
on wood pulp were to be remitted only in case Canada 
should remove her export duties on the same. The Inter- 
national Paper Trust owns 4,500,000 acres of spruce 
timber on both sides the boundary and therefore prefers 
to manufacture its own pulp. There is no import duty on 
spruce timber. 

Willis, The reciprocity policy that had been so successful a 

Tariff, feature of the McKinley and Dingley acts was abandoned. 

In place of the proposal to lower customs duties in re 
to countries that offered reciprocal favors, the Payne- 
Aldrich Tariff provided that an increment of twenty-live 
per cent ad valorem should be added to the whole range 
of duties on imports from countries that fail to accord us 
the most favored nation treatment. Under the Dingley 
Act a reduction of twenty per cent on specific commod- 
ities had been made in a series of treaties with govern- 
ments that agreed to accord us corresponding favors; but 
now a threat was substituted for an invitation, the 
termination of the reciprocity treaties was announced, 
and only by the most skillful diplomacy was tariff war 
with France and Germany averted. Moreover, our trade 
with Canada, amounting to $242,000,000 per annum, was 
in jeopardy. 

( /;.'. 

/" .', ;/; | 

The :ig captci' new tariff was 

the tit . sal restrictions mean 

ris and diminishing customs receipts. Ccr- 

y taxes were imposed on articles of luxury, 

mobiles and foreign-built yachts, on wines 

ami brandies, and on injurious drugs, such as opium, 

u so a deficit was feared, 
itance tax was introduced by the 
House Commiiut ..n Ways and Means, but this was 
abandoned on the ground that such taxes were already 
levied in many states, and an income tax amende 
was carried in the Senate l>> in-urgent and Democratic 
votes. In place of this unpalatable expedient, the Ad- 
ration suggested a tax of two j > reduced 

to one per cent) on tin H of all business cor- 

porations whose income exceeded $5000 per annum. 
The constitutionality of this federal tax on corporations 
chartered by the states is yet to be tested. 

Expansion of Commerce i Decline of Shipping 

The high tariff policy, maintained with slight imxlifica- 
cars, has had the effect of chct im- 

portation of foreign goods. Imports h .-.-.I. in- 

but not more rapidly than population, while the 
ratio of exports to population has steadily risen. 




x'. , 









II 14 



i . 

\oeptions of 1875, 1888 and i88g, and 1893, 
years of industrial depression, the balance of trade has 

328 Industrial History of tJic I '////< v/ . 

ad \\.IIK 

0> X. 

Kept, of the 

M. IV 



Tariff and 

Kept. Indust. 
Com.. VI. 

IV 1,11. 

Kept. In- 
dust. Com., 
VI, Pt. I. II. 

been in our favor for a gem-ration. Tin- total exoc 
exports over imp< hirty years past exceeds 

and a quarter billion dollars. 

For every year following on 1897 tin- value of on- 
ports has exceeded $1,000,000,000. Thi- t \traoni 
shoeing is due in part to the iiu Tea-ing foreign demand 
for the raw materials supplied l>y American farm-, n 
and forests. The export tallies of 1908 report $437,800,000 
in raw cotton, $100,000,000 in pig copper, $-14,000,000 in 
:>bacco, and $21,000,000 in na\ I Hiring the 

last two decades of the nineteenth century we achieved a 
notable commercial triumph in the COIKJIK 
markets for our manufactured commodities The- -urplus 
products of our cotton mills, shoe factories, iron and 
works, etc., have sought and secured purchasers abroad. 
Cotton goods to the value of $22,000,000 are sent to the 
Orient, where they sell in competition with Kngli.-h and 
German goods. Sewing machines to the amount of 
$7,000,000 and agricultural implements worth $24,000,000 
are annually sent to foreign markets, and the total export 
of iron manufactures in 1008 amounted to $184,000,000. 
Farm products are now being exported, not only in the 
rough, as grain, cattle, etc., but as prepared food^. which 
represent greater value in proportion to bulk. The mills 
of Minnesota grind not for domestic markets only, but 
for European as well. The Pacific ports San Fram 
Portland, Seattle, and Tacoma ship the harvests of the 
wheat ranches of California and the Columbia River basin 
to Hawaii, Japan, China, and India. One third of 
shipments is sent in the form of flour, that wheat may 
the more easily supplant rice in the Oriental diet. Re- 
frigerator cars and refrigerator steamers enable the pack- 
ing houses of Chicago and Omaha to send dressed i 
to any part of the world. The exports of prepared meats 
in 1908 were six times the value of the live animal.- -hipped 
abroad. Modern transportation facilities bring the Ameri- 
can farmer, whether on the cotton lands of the " Mack 
belt," the cattle ranches of the plains, the orange groves 

Contemporary Problems 




330 Industrial History of the United 5 

od \\iiik 



Abstract of 
U.S., 1909. 
358, 557-562, 

Ch. XVI. 

of California, or the vegetable gardens of I it bin 

reach of a profitable n Apples are sent from I 

r, Oregon, to the ep* ;id pineapples 

fn>ni i ; :caih thr fruiterers of New York City. 

The rapidly increasing proportions of our export trade 
necessitate the seeking out of new pu I In in- 

dustrial ju>tifu ation for tin- purchase of Ala-ka. tin- an- 
.tion of the Hawaiian I>land> and of Porto Rico, the 
retention of the Philippines, and the maintenance oi 
procity relations with Cuba is the advantage of securing 
commercial control of these complementary markets. To 
the mining camps of Alaska \ve send provision- i: 
change for gold; to the tropic iMands we send foodstuffs, 
textiles, and machinery in exchange for raw sugar, fruits, 
and hemp. Our exports to Cuba come to more than 
$42,000,000 annually, Hawaii and Alaska take from us 
more than $18,000,000 each, and Porto Rico $23,000,000, 
while our exports to the Philippine Islands amount to 
$5,000,000 a year, not more than half their total sales 
to the United States. 

This period of extraordinary commercial expansion ha- 
witnessed an unparalleled falling of! in our ocean marine. 

U. S., 1908, 
284, 296-298. 








Per Cent 
























US. Census, The reverses of the Civil War have never been made good. 
During the generation following, the torn. 
for the foreign trade decreased fifty per cent. The lowest 



C^ n. 'cm? i './; /V/'.'<:r 33' 

ebb was reached in 1898, the year of the Spanish War, 
our total tonnage of steam and sailing vessels com- 
bined was but Now, at the opening of the 
twent r exports and imports 
are consigned to ships that float a foreign flag. 

This decay in'our ocean marine is the more striking stu. 
because the tonange employed in the coastwise trade has 

led, and that on the Great Lakes has trebled during \ ol \'o7 
the same period. Commercial ventures in these waters 
are protected by the exclusion of foreign competitors. Manrfo. 
The immense shipments of iron ore, lumber, and wheat "; J 

ago, and Milwaukee to Buffalo and 
other Lake l.rie |*.rt>. rail into requisition great freight Brtk 

steamers of speed, strength, and hold capacity not excelled c 
in seagoing vessels. The extension of our coastwise Sanpie. 
regulations to Alaska. waiian Islands, and 

Philippines has given the growing traffic from our Pa> 
ports )arg< he hands of American vessels, and the 

tonnage registered for the Pacific trade has increased by 
120 per cent since 1897. The total tonnage now < 
ployed in the coastwise trade and in the s< the 

Great Lakes and western rivers is 6,500,000, eight times 
the tonnage registen reign trade. 

The Subsidy Policy. Legislation in behalf of our sea- Mwvtn. 
going marine has been broached in Congress several times ch - xvm 
in the past twenty years. Differential tonnage duties and IUt, 

.tfter the precedent of the first decades 
of our national history, are incompatible with the 
commercial treaties now in force, and the subsidy policy, 
practiced by our principal European competitors, has 
been adopted as the best means of strengthening our 
merchant service. Senator Frye of Maine brought for- R*t* Frye 
ward two l.ilN in iSgi, the first proposing to subsidize 
mail steamers and the second freight steamers and sailing * 
vessels, in pro; speed and tonnage. Both meas- Howe Rep* 

ures passed the Senate, but the second was defeated in the 
House, and the Postal Aid Law, as finally enacted, provided 
for n .T rates than Frye had originally proposed. 

332 /. History of the United S 



The Fryc 
Subsidy Bill. 












I 2 



o 67 


Under this law, mail contracts were negotiated with tin- 
Pacific Mail Company for service between New York ami 
Colon, Panama, and San Francisco, and from San Fran- 
cisco to Hongkong and Yokohama; with the Oceanic 
Steamship Company for service between San Francisco 
and Honolulu and Australia; with the Ward Line to 
Havana and Mexico; with the Red D Line to Vene/uela, 
etc. ; but our Pacific and South American ser 
not endangered by European competition. The only 
company prepared to undertake a mail contract for 
transatlantic service was the Inman Line, recently come 
under American management. The subsidy of $12,000 on 
every outward voyage enabled this company to maintain 
a fleet of four first-class steamers. Tlu-e vessels, together 
with some of the larger coasting steamers, were requisi- 
tioned for the government service during the Spanish War, 
when the requirement that all of the officers and one half 
of the crew of a subsidized ship be American dti/ens 
proved to have political as well as economic nee. 

The subsidy offered in 1891 proved insufficient to in- 
duce new ventures in the transatlantic service or to main- 
tain contract vessels on the longer routes to South America, 
Australasia, and the Orient. Although four fifths of the 

lit" and three fourths of the first cabin 
traffic originates in the United Statc^. the major part of 
the shipping employed belongs to Great Britain, Ger- 
many, Fr I Japan, so that large >ums are every 
year paid to foreign companies in freights and fares as 

Contemporary Problems 333 

well as for mail service. In the hope of enabling American 

s to comix i, ith thr heavily subsidized English ;fi 

niduccd in toot a general SUDM jl ffnlTn 

It called for an annual appropriation of $9,000,000 for a Soutc Rn<- 

years. The rates proposed were one thin! 

higher than those already prevailing, and they were s?tb COQC 

ht steamers and to sailing vessels. The ^^gL 

I. ill was vigorously supported by the commercial and s ^, 
shipbuihli: tx. but it was ultimately defeated by 

Again in January, 1910, when thr numU-r oi contract 

vessels had dwindled t and four on 

i 'acific, and the mail subsidy had shrunken to $1,185,000 

igressman Humphreys of the State of Wash- 

n introduced a bill in behalf of the Pacific merchant 

ne. Foreign built steel vessels were to be admitted 

to American registry and the mail subsidy was doubled 

i-ssels of the second and third class engaged in Pacific 

service, ships owned by railway companies being excluded. 

The tonnage tax was raised from six cents to twelve cents 

exceed $ i . 20 ; i r year) but 

of this charge was to be rci; i ted States vesseb 

carrying American boys as apprentices. 

The International Mercantile Marine Company. - Thr 
restoration to ordinary trade of ti .ntmen requi- 

sitioned for transport sen-ice in the South African and 
Spanish- American wars brought on ruinous compct 
and a rate war that threatened disaster < well- 

established lines. In 1902 a combination of the principal 
transatlantic companies, with a \ ling 

able rates, distributing tonnage among the ports i nt . 
lilroads to be served, and adjusting sailings to traffic. Marine Co. 
was undertaken by C. A. Griscom, prosit i nan 

and J. P. Morgan, the grr. 
poasfMJon of the Inman. Red Star, and Letand i 
and the purchase of a ma 

Transport. White Star, and Dominion lines gave the 
combination control of one hundred ai 

334 Industrial History of the I 'nitcd 

.ITS. representing more than a million tons freight 
Capacity and one third the transatlantic passeng* 
modation-. Tin- negotiation of a " working agreement " 
with tin- two great (imnan lino and the prim ipal French 
and Dutch companies gave tin- International Mercantile 
Marine a practical monopoly of commerce between 
Europe and America. Alarmed for tin- integrity of their 
merchant service, the British government offered the 
Cunard Company, as the price of independence, an annual 
subsidy of $750,000 on a twenty-year contract, and >ul>- 
sidies were withdrawn from the White Star line. 


1886 . 

II . CO 

1807 . 

IO 72 

1887 . 
1888 . 



1898 . . . 
1899 ... 



- - - 8.53 
1 1 81 

1890 . 

1891 . 

1892 . 

1893 . 
1894 . 
1895 . 


. . . 10.28 

1901 . . . 
1902 . . . 

1904 . . . 

1906 . . . 

. 5-03 

. . . 
... 5-69 

The Morgan combination was formed at the close of a 
decade of abnormal prosperity, and the subsidizing com- 
panies were taken over at a price based on the re\ ( ni; 
1900 with no regard to cost of ships or previous capitali- 
zation. The economies of combination v. 
mated and the difficulties in the way of maintaining 
monopoly of the transatlantic trade were miscalculated. 
The panic of 1903 well-nigh wrecked the enterprise, and 
its capital stock of $170,600,000 shrank to $70,000,000 
market value. No dividends have as yet been paid on 
preferred or common stock. The International Mercan- 

Contemporary Problem* 33$ 

ie has lost control of iU i <ierman, and 

h lines, hut it has donf much to insure ^**<j 
permanence to the American transatlantic service. 

Currency Problems 

Demonetization of Silver : the Gold Standard. Our Dm* 
bimetallic currency system has never been in full and 
successful operation. The overvaluation of gold in the UucUh. 
Coinage Act of 1834 was enhanced by the enormous out- c* x n 
I>ut of the California mines. Production of i the fee*. of 

was inconsiderable until 1870 and the 
annual output was readily absorbed in the art>. little was 

ht to tht mints, and that little was coined into dc- 
based fractional currency, as provided by the Act of 
1853. The sum total of the diver dollars coined from 
1789 to 1873 was t old had been 

coined since 1850 at the rate of $32,000,000 per year. 
No specie was in circulation during the war period except 
the $25,000,000 in gold used on the Pacific coast In the 
back to a specie basis, Congress naturally 
overlooked the pan that silver had been intended to 

in our currency system. The Coinage Act of 1873 
aimed to conform currency legislation to existing condi- 
tions; the silver dollar of 371.25 grains was dropped from 

-t of coins to be mintt<i. hut the manufacture of a 

-nt. lining 378 grains of pure silver was authorized 
for u>< Oriental trade. This trade dollar, like 

nal silver, was given legal tender efficiency to the 
amount of rive dollars 

demonetization of silver attracted little attention 
at the moment, hut it was soon denounced in bitterest 

as a fraud perpet >n an unsuspecting people 

i>> th A all Street. The supposed plot 

was not discovered until the increasing output of >i 

i.l.i mines brought an oversupply of that 
i hi- market and caused a fall in price. Unfor- 
tunately for thi- intm-Ht. the foreign market was seriously 

336 Industrial History of the Uti. 

Ms same linn- l>y the <1< ..f silver 

.my (1871), in Holland and the Scandinavian 
Peninsula (1875), and in Austria (1879). Tin- Latin 
Union continued to use silver as It-gal tender, hut 
pended coinage in 1873. By con . the market 

>f silver to gold veered from 15.57 U1 1871 to 17.87 
in 1876. Close upon this drop in value arose a 

demand for the renewed coinage of siher at the legal ratio 
of sixteen to one. The agitation originated with tin- 
mine owners of Nevada and Colorado, \\ho \\Mied t 
pose of their product at the mint ; hut it was CO] 
seconded by the debtor class, the unfailing ad\ 
cheap and abundant money. The farmers of the new 
West, -truggling under heavy morl: < re easily con- 

.tlue of gold had been advanced hy the 
money monopolists of New York City, and that silver 
was the true measure of purchasing power. The panic of 
1873 and the prolonged stringency in the money market 
lent plausibility to this not unnatural in fen ; 

Richard Bland of Missouri brought before the House 
(1876) a bill providing for the free and unlimited coinage 

er at the ratio established in 1X^4. The bill j 
the House after protracted debate, but a Senate a< 
ment restricted the amount of silver bullion that might 
be presented at the mint and authorized the secret,, 
the treasury to coin at his discretion from two to four 
million dollars' worth of silver per month. Presidi 
vetoed the measure on the ground that the proposed dollar 
was eight or ten cents less in value than it professed to be ; 
but the bill was carried over his veto and 1 w in 

1878. The silver dollars coined under the Hland 
were to have full legal tender efficiency, and their circula- 
tion was furthered by the issue of paper cerli. iinst 
the coin held at the mints. 

This law was in force for twelve years, during which 

time there were coined $369 400.000 silver dollars, and the 

ge of gold for the same interval amounted to 

$470,600,000. The volume of the specie currency was 

Contemporary Problems 337 

apita circulation rising 

$15. ; s to $22.82 in 1880, and money was more 

hint than in the \> of inflation preceding the 

crisi> 73. Gold began to lea country' 

000,000 was exported in isSj and $41,000,000 in TrMMry. 
1884), and silver superseded gold in payments on govern- ffi' _,_ 

Cations as well as in pr hange. The 

crisis of 1884 was due in some degree to this adoption of 
a depreciated cum 

The advocates of cheap money were not alarmed by 

the prospect of the substitution of a silver standard. 

persistently urged the free and unlin aage 

..imes of the I .inner- Alliance 
and i 

now as alway The agita- 

tion for and against man 

1890, a measure that represented the 
desires of it was a compromise of con- 

it crests. The secretary of the treasury was 
bullion at the rate of 

4,500,000 ounces per month, the market price (up 
f one dollar 5 grains) being paid 

in treasury notes issued for this purpose and redeem- 
able in gold or si demand. The H was Sherman. 1 
repealed, but the treasurer was auth- a as 1<x 

r dollars as might Hod*. 

be needed from ti iag(X 

notes. The ounces a Tau^fe. 

year, coupled with exports, promised to absorb the total The saw 
annual output of the mines of the United States, and 
prospect brought ip to 

par. Them.. 1890, was 17.26 to one 

and the valu ill ion in a standard dollar o. 

rose from sev< man Rcpcd 

held for three years and a half, and du time 

t up one hundred at ,ine 7soS. 

mill: er at a cost of $156,000,000. 

338 Industrial History of the United A 

a brief revival, the value of silver slumped again, and the 
Treasury lost $16,000,000 on account of thi> <Kpnviutl 



(1792-1834, 15:1 
(1834+ 15-98:1 




m < 

3 U 

































, ' 





^. ! 
' >, 








1 i 

This chart is to be read from left side of page. 
1909 represents one year. 

Each square from 1904 


This desperate endeavor to raise the market value of 
atio was ultimately thwarted by events 
in th i upended the ui the ritvtt rapM m Junr. Iflgj, th- K.i^t In-Lin 

<-d imnutlia: .'8.25 to one. President 

land called a midsummer extra session of Congress 
;> resented the necessity of stopping the purchase of 
>ilver. rhc House readily acquiesced, but the Senate, i:s-* 
where the silver interest had been r< 

f several Western states, Wyoming, Idaho, and 
.ma, stubbornly contested the measure. The 
was finally repealed, and the purchases of 
leax-d in l)ecemlKT, iS<^. the coinage of 
the silver bullion in t he treasury was suspended until 1808, 
when the minting of $1,500,000 per month was ordered. 
The rating of the discredited metal sank to 32.56 to one 
in 1894. ue of the silver in a stand- 

ard dollar was i>ut 

The Financial Crisis of 1893. Meantime. the hu>inesft 

vedented severity. 
Advancing prices had induced srx 

and the banking fatili: , had become Q,,^ 

heavily involved. The failure .| the Philadelphia and Banksol 
Reading Railroad (February 20, 1893) occasioned wide- ; 
spread alarm, and the general public txrame uneasy as 

Depositors, Burtoo ^ 

!y in the South and West, began to demand their * 305. 
hard-earned cash, and the banks were forced to call in 
deposits from the reserve cities. But the $204, 

of currency absorbed by the seaboard institution had been 
loaned for investment and was not easily recovered. Ch. viii. 
Some five hundred an : the smaller banks were 

obliged to suspend, and the financial centers were 
saved from a like disaster by resort to an emerp. 
i-urre: the pret < i $57 and 187^. I DC N T CW 

use issued loan certificates for the ac- 
<\\ banks, and this makeshift 

340 Indus t, : try of the Unit 

Kc T t. 
Com., 1808, 




Act of 1000. 

Law of looo. 

was imitated in Ho>ton. Philadelphia, Baltimore, ami Pitts- 
burg. The business failun [893 numbered 15,242, 

the total losses amounted to $346,779,889, and th< 
prcssion extended to every branch of indu-try. Many 
of th< mines could not be operated at prevailing 

prices and di>chargcd their lab : he Kuropean dc- 

mand for wheat fell <>lT, and the- price of thi 
dropped to fifty cents a bu>hel, and \\\. ipled 

with the failure of the mm croj) i iSc^j involved 1 1 
of farmers in ruin; manufacturers, menaced by tli- 
duction of import duties proposed in the Wilson Hill, cur- 
tailed production or shut down altogether, b '.ined 
and freight receipts fell off to a disastrous degree ; rai 
companies were seriously embarrassed and constru* 
ceased, the demand for rails and structural iron shrank, 
and steel manufacturers reduced their output by 
third. The reaction upon wage earners was severe ; idle 
farm hands tramped the country in search of work, un- 
employed operatives crowded the -t reels of the fa. 
towns, demanding work or food, laborers abandoned the 
mining districts and flocked to the cities. The whole 
country was prostrated. 

The election of 1896, involving the possibility of 
coinage of silver at the ratio of sixteen to one, prolo 
business unrest, and the failures of that year mini' 1 
15,088, but the victory of the kepublu 
fidence in the stability of the currency. Decisi 
was, however, delayed by an opposing majority in tin- 
Senate, and not until 1000 was the gold standard declared. 
The extraordinary revival of business prosperity 
McKinley's election was due not so much to ! 
as to far-reaching transformation of economic condi 1 
The failure of the wheat crop in Ku.--ia and Australia 
called for heavy exportations of jjrain and brought about 
a welcome rise of prices. With wheat selling at a dollar 
a bushel, the farmer could pay his debts and spend money 
for improvements. The foreign market for American 
steel and structural iron was being developed, and a period 


raordinary prosperity opened i--r ;,.: : , ndus- 

discovery of gold in Alaska brought a new of the boarded metal to our mints, and between 

1898 and 1008, $1,105,332,650 in gold was coined. The 

Mllists' argum the supply of gold was short 

of the demand, and that it> value was, therefore, appre- 

., ceased to have weight. The per capita cum 

i rose from $ 1896 to $35.79 in 1907, 

he advocates of abundant money were fully satisfied. 
Revision of the National Bank System. The volume Count. 
of the currency had not been increased by the national 
banks. Their issues had been actually curtailed after the 
financial crises of 1873 and 1884 and 1893. The amount 
<>f tli -i)i was but $162,000,000, 

less thai ne since 1865. The number of Dewey. 3*5- 

nal banks was steadily increasing, but their issues "' 4> 
had i the approach n of the 

bonds gave these securities a high mar .<-. BoOo, in. 

To issue money against ni: .e par value of w ' 

bonds that were quoted above par was not a profitable 

.e free silver and greenback constituencies were quite White, 
content to see this f our currency disappear. 

>f our national banks were in the wealthy ch. XVI. 

v-rth. ami they were regarded in 
scctions of the country as parties to the conspiracy 


>nal bank issue were brought 

forward from . such as the extension of the 

term of the national h< bond is- -ubstitu- 

ti>n of state and municipal bonds, and the safety fund 
system, hut n<> thoroughgoing reform was able to secure 
a majori proposition of Secretary 

Gage 13 plan was adopted and 

I >ut into opera oo, note 

issue was allowed nil face value of the bonds, 

the t.i\ .-;i drculatkNi wai ri-.luced from one per ceir 
one halt : :ie per cent, and national banks with a capital 

342 Industrial History of t ><t \/w /,-.< 


of iheTrems., 

Com., 1898, 


I boot, 

Banks of 

Ch. XXV. 

of but $25,000 were authori/ed in 1- Q0fl more tlian 

three thousand inhabitant- I dilu ation- otTered 

considerable relief from the difficulty under which tin- 
banks were laboring. The issue of in il bonds 
for the Spanish War and for the building of tin- Panama 
Canal enabled the banks to purchase these securitit 
terms under which currency could profitably IK- issued. 
By September, 1901, 662 new hank- were chartered, 
country hanks for the most part, capitali/c-d at less than 
$50,000. The number of national hanks in September, 
1907, was 7000, more than at any previous period. The 
issue has ri-en to $717,000,000, and the average- dividend 
paid by national hanks increased from 3.94 per 
in 1900 to 1 1.8 per cent in 1007. 

Reform Propositions. The panic of 1007 attracted 
renewed attention to the defects of our hankin 
The special Strain upon credit agencies that develop- in 
the autumn when the purchase and transportation of 
crops necessitates extraordinary drafts upon the funds 
deposited in the central reserve cities was unusually 
severe, the foreign loans negotiated by Wall Street ba- 
in the interest of stock exchange speculators in anticipa- 
tion of grain shipments reached unprecedented dimen- 
sions, and the stock market went wild over some dubious 
industrials. The normal limits of safety wen- ignored, in- 
terest on time loans rose to six and seven per cent , and 1 >anks 
and trust companies extended their loans until th< 
serves were depleted below the legal minimum of twenty- 
five per cent. * The crash came in October ; the exposure 
of personal speculation on the part of the officers of se 
banks, trust companies, and insurance companies, and the 
mismanagement of the Metropolitan Street Railway Com- 
pany, shook public confidence in stock investments and in 
the integrity of all credit agencies. A run upon some 
prominent banks followed. Even solvent institutions were 
unable to meet their obligation- in ca-h. and many failure- 
occurred. The Banks of Kngl-.nd and (iermany r 
their discount rate, and foreign loan- fell otT. The cxtraor- 





- - 










1 00 1 





'/ Problems 543 

v demand t interest on 

nd Ioan> ; > |xrr crnt, 50 per cent, a 

i- few desperate days of pu: 

.inimi/r thr ;:c, t : tin- . ri>is, heroic measures 

resorteil to 11" ' ted States Treasury sent 

S-s. 000,000 to \, deposit with nal 

bankv to aid the jeopardized institutions, 

and certain \.-. :s organized a money pool 

\\hiih immediate obligations might U- met. ' Gold 

was impor i abroad, and clearing house certificates 

issued to the amount of $50,000,000. Such mutual 

rdrMtiaU had been resorted to after the panic 

7 ami during tin y subsec) 

crisis. In the autumn of KJO; t i urrency 

was utilized not only l>ut in Chicago and 

<uis and in practically all of the reserve cities. In 

is remote from financial centers, business nouses 

and employers of labor offered their personal checks in 

The crisis of 1907 was unlike all previous crise^ 
that there was no subsequent depression. Few railroad 
rations were forced into bankruptcy, and the pro- 
n of business failures \va- 

crisis of 1893. It was a rich man's panic, confined to the 
stock market and credit operations, and the prosperit 
the country at large was untiinunMutl. Farms, mines, 
and factories continued production undeterred, and there 
was no appreciable decline in prices, wages, land values, 
or railroad earnings. The output of pig iron, a sure index 

PIG IBON Ptooucnox nt THOUSAND TOMS, 1897-1908. 

344 Inttusft fory of the i 



Central Re- 
serve Bank. 


of market omditi. ted the advancing tide of pros- 

v. Corporation alone shrank in value, 

but here the apparent loss was appalling, ainountii 
$10,000,000,000, or one third the par value of tin- 
on the market. Even here, the mow rapid l>< 
precedent, and within a year after t! 
more in the heyday of prosperity, and -peculator- 
promoters were again at work developing every k; 
resource of the country. Wiseacres shake their 1 
prophesy that riding for a fall, but the average 
business man is confident of success. 

The annual stringency is due to no Lck of 
Our present per capita circulation i than that of 

any European country except I-' ranee. In 1907 then- 
was gold coin in the United States to the amount of 
$1,780,000,000, and of this all but $680,000,000 wa 
posited in the United States Treasury, a >pecie reserve that 
exceeded the combined deposits of the National Hanks 
of England, France, and Germany. The pap< 
in circulation amounted to $2,332,000,000 practically all 
of which was in the hands of the people. It was 
dent that the mechanism of credit was inelastic and that 
some more effective means of getting hoarded cum 
into circulation must be provided. 

In 1908 a monetary commission was appointed with 
authority to investigate banking experience at home 
abroad, and report a scheme of reform. Its thirty volume 
report, published in 1910, is the most thoroughgoing in- 
quiry into the history and practice of banking yet i 
The recommendation for a central bank, after t! 
model, to serve as the fiscal agent of the Federal govern- 
ment and receive Treasury deposits, and to act as a < 
mon reserve for all national banks, is now before the 
country. Its advocates believe that -ueh an institution 
Id be authori/ed to n he volume <>f the cur- 

rency and to control credit o by adjust ii. 

rate of discount on loans to meet a financial enn 

Meantime public discussion has centered about 

Contemporary Probtfms 


other proposed icforius. A postal savings bank had been 

aiU'i.iteo! l\ 1'" '::.. i !<r M<\cr aiM inl"r-r-l :;. l'r< : 

Rooscvdt with a view to attracting small deposits 

: wage earners. The proposition was indorsed in the 

.m platform of 1008, and embodied in an enact- 

he post-offices of the .:Tnl the 

moat con medium for savings accounts 

abso! c success of the experiment in some thirty 

ns of Europe, Asia, Africa, Australia, and 
a would sect t this oppor- 

tunity for accumulation would be especially adapted to 
n migrant population who, in default of any t 
ision, are depositing considerable sums with the 
government in the form of postal orders, but the scheme 



I :u. 







$71 68 





S V 










Hungary . 






!! . 





8.01 t. 101 

46.27{. 1OI 


*,w j, yj 

*** / j , o vr 

/ ' 

was strenuously opposed by small bankers and savings 

institutions gcner. -he ground that it \\ould draw 

off i hi-nvise accrue tt> them. 

I he panacea proposed by was the 

guarantee of bank deposits on the Oklahoma plan. This 

new and courageous commonwealth enacted a law 1 1 >ccem- 

miediately after the pan: ng a 

1908. 77- 

Industrial History of the United 

guarantee fund by assessing tin- Lank- chartered by the 

rage dcpo>it>. The fund \ 

be admini>tered by a State Banking Hoard made up of 
the governor, lieutenant governor, prc-idcnt of hoard of 
agriculture, the st urer, and the auditor, and was 

to be drawn upon from time to time to remunerate the 
depositors of bankrupt institutions. The Board was un- 
fortunately given no adequate and 
regulation >uch as are ! by the Comptroller of the 
Currency over national banks, and the bankers them- 
selves undertook no form of associated control. 'I 'he im- 
mediate effect was to attract to banking enterpri 
number of speculators eager to take advantage of re 

d public confidence. The legal minimum for capital 
required was $10,000, men of little experience and 
tionable business reputation were able to secure charters, 
and soon every village in the state had one or more banks. 
The offer of high rates of interest brought out the latent 
resources of a prosperous farming community and de; 
accumulated with amazing rapidity, insomuch that several 
national hanks surrendered their Federal charters in order 
to participate in the access of business. When the Inter- 
national State Hank of Coalgate failed, the depositors 

paid in full out of the guarantee fund, hut the total 
liabilities were inconsiderable. When, however, the Co- 
lumbia Bank and Trust Company of Oklahoma City, the 

t credit agency in the state, closed its doors (Sep- 
tember, 1909) the guarantee system was put to a s< 
strain. With a capital of $200,000 thi> institution had 
acquired deposits amounting to $2,806,000, besides estah- 
IMiing a series of branch banks. Individual depositors 

paid in full and trust fund- were relegated to their 
respective bond securities, but to make good the Mim- 
due to corresponding hanks, a special assessment of three 
fourths of one per essary. The more >ub>tan- 

tial hankers challenged the ruling of the hank ioner 

and appealed to the court- to determine the i-ue. It be- 
came evident that the Oklahoma law did not afford 

Contemporary Problems 347 

safeguards against wildcat banking, and the plans 

i depoaiu adopted in 1909 by Kansas, 
braska, South 1 and Texas were more conscrva 

Government Control of Railroads 

The last two decades of th< nth century wit- 

nesscd a developn transportation unpar- 

il War. 

ulustrial depression consequent on the crisis of 1873 
.ick con- was prosecuted with re- 

led energy. The total mileage in operation in 1008 Sut. 
is 240,000 as against 74,000 i he capital in- 

vestment represented amounts to $ 1 6,000,000.000, four times 6 1 - *,,, 
that of i,v; ratio between mileage and population 

10,000) indicate ties have 

more than kept pace with the development <>f the country. 
The passenger business of roads has doubled in 

the past l u traffic has in- 

creased 335.8 per cent. Passenger rates have been pr 
stead 'dined at an average of two cents a mile, 

but i: e and one fourth cents 

Ml t> three fourths of a cent in igo8. 
harges has been usually consistent with 
tenance of dividends, because, the roads once estab- 
lished and initial cm expenses covered, traffic 
grows more rapidly than current expenses. 

Charges JHT ton mile have been of necessity higher on 

the \V extern i roads, especially in ti. 

stages of their nenf The effects of the devasta- 

vil War are n the high charges on 

e. Profits depend on the 

:it and chara : transported, rather 

than on the rates secured, and the volume of traffic fluc- 
tuate- < neral industrial conditions. The average 
rate of di\ i. lends was considered low in 1876, but it 

he crisis of 1884, then rose slightly, 
only :oin to one and one half per cent with the 

348 Industrial History 






Hi-!. ,,f 




Annals Am. 
8 : S9. 

industrial depression of 1893. Since 1897 annual dividends 
have risen steadily. The ratio of dividends paid to total 
stock, common and preferred, was 5.25 in 1908. 


























I. O2 





i. 03 



1. 01 









Santa F . . . 
Richmond & Dan 

Southern . 

Union 1'acitic . 

Avi-r.ip- lor .ill 

Roads .... 

Average Rate (1876) 
on Stock . . . 







.6 S % 


The crisis of 1884 was occasioned by over-investment 
in railroads. The mileage built in 1882 and 1883 (18,314) 
exceeded the construction of 1870 and 1871 by five thou- 
sand miles. In 1884 and 1885 eighty-one railway corj 
tions holding nineteen thousand miles of track were j> 
under receivership, and thirty-seven smaller railroad 
properties were sold under foreclosure. Transportation 
investments had no part in bringing on the panic of 1893, 
but the railroads suffered severely from the consequent 
depression. Both freight and passenger traffic fel 
earnings declined, and some of the more speculative enter- 
prises were unable to cover operating expenses and meet 
interest payments on their bonded debt. Creditors 
brought suit, and the roads, one after another, were | 
over to receivers. More than two hundred rail. 
panics, representing fifty-six thousand miles of and 
one fourth of the railway capital of the country, went 
into the hands of receivers l>ct- and [896. Simr 

1893 there has been comparatively little increa-c in mileage 
and the energies of railway in, i\v bem devoted 

to consolidation and to development of the existing lines. 

Contemporary Problfms 349 

\ bankrupt railroad requires time 
and ikfll 1 iidholders and the pi 

served an- rodosure sale, and 

reorganiza >puny which falls heir to 

corpo; I'hc processes of reorganization have y 

.mciers with reserve capital to . . .nbine 
local interests into a railroad system. 

Branch lines have been absorb*. nal facilities 

merged, independent roads bou the end that a 

-itr trunk line rnigh 1 the transport.. 

sts of a great section of the o.umr. the 

nond and Danville line was bought rcclosure 

sale ) rgan and reorganized as the Southern 

Railway, and the Pennsylvania Road was able to acquire 
control o\c The great 

transcontinental lines the Santa F, the Northern 
Pacific, and the Union Pacific were most heavily in- MbcfacO. 

d because traffic across the ( had %$* 

third these roads to 

; the case of icific was to reor- 

ganize in such fashion as to enable the managcnu-r 
meet the claims of bondholders and to cancel its accumu- 
lated indebtedness to the government. This was finally 
accomplished in 1898, the depreciated property was bought 

a group of New York financiers, 

man was made president of the company. He was known 
only as a successful steel and much doubt was 

road. But Mr. Harriman immediately set about the 

recon ".e system. The roadbed was improved, 

h lines were built to tap new industrial the 

^ stock was enlarged and brought up to standard, 

and serious effort was ma the 

communities served. The death < 

gave opportui hase of the Central and 

Pacific and this was q -ed. funds being 

secured by bonds issued against Union Pacific stock. 

3 SO I ml us t> 'ory of t 




Lectures on 


Kept. Inter- 
state Com- 
merce Com. 
on Intercor- 
porate Rela- 
tionships of 
Railways in 
the United 
States, 1906. 

This >n c\tend<"l tin- original line to San Fran- 

cisco, gave control of tin- traffic of the I lope from 

Portland to Ix>s Angeles, and e-tabli-hed connection with 
El Paso, Houston, and .V UN. Sub>e<|uent pur- 

chases of the Oregon Short Line, the Chicago and Alton, 
and the Illinois Central were negotiated by skillful ma- 
nipulation of the Stock market, fund- being provided 
by mortgaging previous holding- In the endeavor to get 
control of the Chicago, Burlington, and Ouinry and so to 
secure a Chicago terminal, Mr. Harriman came into 
conflict with J. J. Ilili, the president of theCrcat Northern, 
who in combination with J. P. Morgan had bought a 
majority stock interest in the C. H. & O. and the Northern 
Pacific. The laws of the states of Minnesota and \\ 
ington, through which the two northernmost of the trans- 
continental lines pass, forbid the mcrgii, .rr-hip in 
parallel and competing roads, but this difficulty Mr. Hill 
hoped to surmount by the organi/ation of a holding 
poration, the Northern Securities Company. The legality 
of the device was contested and an adverse decision 
was given by the Supreme Court of the United S- 
The redistribution of stock left the Northern 1' 
and the C. B. & Q. to the control of the Great Northern 
management, but Harriman secured direct access to 
Chicago by the acquisition of the Chicago and Alton 

The dissolution of the Northern Securities Company 
has prevented any farther merging of parallel lines, but 
the consolidation of connecting roads into a continuous 
system and the leasing of branch lines greatly conveniences 
shippers and the traveling public, and is only protested 
on the ground that so vast an accumulation of wealth 
and power may transcend government control. Half a 
dozen great railway systems now control the traffic of t he- 
whole country. The Vanderbilt lines dominate the t 
portal ion interests of the North :atc-. The ; 

of tlv .rk Central with the Lake Frie and Western, 

together with the annexation of the Michigan Central 

*i)f)lt~y PfobltHU 3 5 1 

ami ' igan South, ni, ^'iv this combination ODD* 

tr.l oi r.ul-A.i;. OOQOaCtkMH U-r.M-rn Chi. .r.-.. .i.v! NY-,v 

\\hile a nii yetr lease of the Boston and 

Albany secures the roost direct - -rt hem port. 

housand miles of track and seventy thousand 

freight cars are operated under this management. The 

Pennsylvania system monopolizes all the transportation 

'.ecu iMt-'.iir- and the sea. The goods to be Gnat RAO- 
l arc exceptionally bulky, coal and coke, 
steel manufactures. One 

1 States is transportetl by the Pennsylvania, and 

t\\o hundred and nitccn thousand rars are em- 

scrvicc. The Baltimore and Ohio and the 

Long Island Railroads have been brought under the same 

syst< i a total mileage The 

d lines form the main arteries of the Mississippi *of 

rn the Gulf to the 
Great Lak . to the Rod; 

-. The > 

management has consolidated the trunk line 

le and Ohio. 

These combined lines, with their ni: ranches, tap 

ini|M>rtant industry f the South, . 


the coal and - s of the southern 

Appalachians to the fa* is and to the ports. The 

transcontinental railroads are controlled by three 

sts. The Atchison, Topeka, and Santa F6 was 

cessfully reorganized after the ollapse of the original 

management in 1893 and n an indq)endent 

>, although Harriman was admitted to its board of 

< extend to San Francisco 

establishes direct connection ) Kansas City and 

the most import. California. The Great 

Northern operate- ipolis, and Mani- 

toba under a nil. i and ninety-nine year lease, 

and thus I.iy- hold on the land's of the Dakotas 

and the Columbia Ri\ the timber ranges of the 

352 Iminsti :ory of the Unit, 


! Re- 
ft MM "it 







Appendix III. 

List of Ref- 

<TI-:I< c- .ii 

Control of 

dust. Com., 

IX, 897-920. 

The K 

sv.iy Problem. 

Cascades. A working agreement with the Southern Kail- 
enables the Great Northern to < ton and 
hardware from Alabama t<> I'uget Sound without t: 
shipment, the Chicago, Burlington, and Ouincy serving as 
Dg link in this direct commerce from sea to sea. 
iman system covers the territon tlie 
mri River and the Pacific coast. Kighteen thousand 
miles of track and $350,000,000 of capital are represented 
in this vast consolidation. 

The panic of 1907 gave new opportunity for the acqui- 
sition of railway properties, and Mr. Harriman utili/ed 
it by the purchase of a controlling interest in the Illinois 
Central and the Erie Railroad and secured sufficient stock 
in the New York Central, the Baltimore and Ohio and the 
Missouri Pacific to entitle him to representation in their 
management. Since the death of this " wi/ard of finai 
the great railway system built up by his genius shows 
signs of disintegration. The most important of recent 
developments is the so-called Hawley system, which by 
means of the Rock Island road and its extensions domi- 
nates the traffic of the Mississippi Valley from the 1. 
to the Gulf. 

Rate Regulation. Charters of incorporation, both 
state and national, and the general incorporation laws 
adopted in lieu of special charters by the states, have 
done much to determine the relations of the railroad to 
the community it is intended to serve. The f ranch: 
usually granted for a limited term and is revocable on 
failure to comply with its specifications. Provision for 
the security and comfort of passengers, safety appliances, 
in the interest of employees, regulations as to sp 
grade crossings, whistles, signals, etc., the convenience of 
time schedules, the adequacy of accommodations, notably 
in freight car service, all these requirement- have been 
successfully enforced. The pooling of the in t ere-: 
competing roads by maintenance of uniform rates, par- 
celing of the territory and distribution of the traffic or 
division of earnings, has been enjoined by both state and 

?#rary Problems 353 

uil authorities, but without much avail The limi- 

chargcs on paMeoger and freight traffic, 
publicity of tarits. .uul th. <>f rebates and of 

M between shippers and shipping (mints are 
more deeply conci welfare. 

ic repeal of the Granger laws, and the recen 

ylvania, North Carolina, Minnesota, and 
Missouri has been even more discouraging. Their laws 
prescribing a two cents per mile passenger rate were set 
aside by the courts on the ground that the rates fixed 
were so low as to be confiscatory and that the penalties 
proposed for noncompliance were so severe as to amount 

initiation. In lieu >f direct legislation, son 
states have established railway commissions authorized to 
investigate charges of (1 -tappers, 

and to secure justice as to rates, classifies "" 

!>utton of cars, n MS to this general &# 

practice are significant, i .lilleran states and two it. II. m 

territories where the need of transpo: .tcilities < 

rides every other consideration, and five Eastern states 
the railroad interests rule the legislatures, have as 
rovidcd no supervising commission. 

State a. rcised through limiting Junc*,Tfce 

r through railway commissions, r 

1 of 

interstate cummerce, notably since the epoch of consolida- 

leral suj was 

led by congressional enactment in 1887. The Cul- 

lorn law required full puhl ites and forbade pool- 

ing as well as discrimination between places, persons, and R*flw*y 

sliipments, so far as interstate traffic is concerned ; and an 

imerce Commission, appointed by the j 
dent of the United States, was empowered t gate 

all charges brought before it as to tial tarit? 

bates, etc re an unjust rate. The tlitTi- Amerkui 

culties in the way of securing even-handed justice for 
<-r. the railroad, and the general public were 


354 Industrial History 



PI in, 


the Inter- 
state Com- 
merce Law. 

Kept. Senate 
Com. on 

Kept. Inter- 
state Com- 
merce Com. 

Freights, etc. 

however, many and great. To the complrxitu- of rate 
regulation were added the elusive method- of discrimina- 
tion involved in terminal facilities and ] 
and the problem has seemed ! nd the wisdom of 

state and federal legislatures. The Hepburn Amendment 
(1906) empowered the Commi ion to dr. ason- 

able rate that should he binding upon the transportation 
agency until set aside by the courts, and brought < 
companies, sleeping cars, and refrigerator ears under the 
jurisdiction of the Interstate Commerce Act. Hut ]XX)1- 
ing was extensively practiced, and railway comlnn, 
increased their territory from year to year. Both 1 
dent Roosevelt and President Taft recommended UK- 
abandonment of the anti-pooling clause of the L 
1887 and the substitution of a check on the aojiiisiti. 
stock in competing systems. Under the legislation of 1910 
the prohibition of traffic agreements is maintained and tin- 
powers of the Commission are enlarged. Telephone and 

raph and cable companies are added to the jur 
tion of the Interstate Commerce Commission, and the Com 
mission is authorized to investigate the justice of a new 
tariff, with or without complaint from shippers, the opera- 
tion of the rates in question being suspended during the 
inquiry. A Commerce Court was established to which t he- 
decisions of the Commission might be appealed. 
\\ithstanding persistent legislation and litigation, ther 
been an effort to advance freight rates in the past 
years, occasioned, say the railroad men, by higher cost 
of construction, rolling stock, labor, etc. 


I , (,:,,,n:i( 


Business Monopolies 

Concentration of capital in the hands of successful 
entrepreneurs has been the most significant tendency in 
the past thirty years of our industrial history. The 
wealth of the I'nited States, according to the 
1900, is $94,300,000,000, three time- that reported in 
1870. I wealth has increased from $780 in 

Contemporary Problems 355 

1870 to $1235 in i goo, but riches arc leas even! 
than \\.ir In i8<x> there wer< 

I jproxim thousand millionaires and mul- 

timillionaires, whose property aggregated $12,000,000,000. 

numlx-red i) IKT \\e popula- 

Aeulth. the well-to-do 

were 28 IKT -h. jH.pulation ..i..! owned 20 per Wealth, 

wcahh; the poor made up 64 jx 

|>opulation. hi. only > p- : the wealth. 

probable that the inequality is still greater now> 
equalizii iod have Wot, The 

pass* ut>lic lands that may be <1 to ad- 

vantage by the small farmer are exhausted, and the arid 
lands of the West can be developed * 

; >anics commanding large t 1 

artisan is at a hopeless disadvantage in h 

and the -mall enter; 

y large-scale producers. The mass- ! ' ' M 
ing of capital and y consequent 

of ma< t from 


The merging of a number of imlep. ris into JcnU 

a business combination has been the especial achievement 
of the entrepreneurs of the present gen The ad- ch.l-IV. 

vantages accn. wholesale purchases of raw material, 

the conversion of wastes into by products, and the 
com|Ht;ti\. marketing of goods, are so great that if the 

inaliailrmrnt lie \\i-e nOOHl M-t-m- ine\itaMr. When 

there was added to these legitimate .iges 

that the large shi^xrr :n transportation 

agencies in the way of rebates, preferenti.i and 

ties, the he great com'' 

lruuht into t :\ with the independent 

prodiurr. was assured. An indu>trial r npa- 

rable to that resulting from the introdm tion of machii 
has been accompli 

Most notable of the earlier on us was the 

Standard Oil Company. This group of Cleveland refiners 

356 Indust 

tltc utttted o 


; .'. IX. 


No. OF Es- 


< M-IT M. 1-KK 


rut 1 si All 

\\ A.K 

not ESTAB. 


ri K I-IMI. 



$ 41,292 



$ 37,379 




































U.S. Census, 
toco, X 


No. or 



No. en 


E or 

I'kni.l r T 1'KK 

1850 .... 





1860 .... 





1870 .... 





1880 .... 





1800 .... 





1900 .... 






U.S. Census, 
/ooo, IX. 


No. or 




No. or 


PR<H.I < T i IK 

1850 .... 


$ 18,824 


$ 64,766 

1860 .... 





1870 . . 










1890 .... 

i 118 








Contemporary Problems 357 

k to secure, not only the advantages of whole- 

iianufacti; 1 of the crude oil market and 

.-; the transportation facilities as well. In 1870 the 

iard was one of two hundred and i 'fineries, Sudud 

and its product was only four per cei ;.ut. ' ' 

controlled 95 per cent of the oil refined in th<- ; 

lous opposition of crude oil Tarbdi 
producers and independent refiners induced in 1882 a standard 

fusion of the Standard interests. I hi forty * 
affiliated companies made over their respective properties Doad ^ 
body of trustees, rec< exchange in. Tnut*. 

cates pro rata for the stock - d. The business Moody. 

was thereafter managed by th trustees, and all 

possibility of variations in policy was done away. The 
arrangement was entirely successful so far as control of 

\asconcer Large-scale produ< *** 

dered profitable s< ;>rocesses of 

and reductions in selling j> 
that ami have been brought al 

to-mouth mcthtxls in vo^uc in the oil fields. 

success of the Standard Oil Company suggested 
similar combinatiot r lines of business. The sugar 

refiners, the whisky the manufacturers of 

tobacco, salt, steel, tin pla pooled thtir interests 

in more or leas successful con >. Most of the 

rrouiring large capital and affording oppor- 
tunity for monopoly of output or of raw material at- {ff^ 
cd to organize on a noncom; lusis during Salt A'n. 

t^t decade of the nineteer Some three Jk.Tbe 

hundred different industries, representing a capitalization j^J^ 
of $7,246,000,000, were so organized under corporate Moody> 
ng this period. Faith in the efficiency of ' 

na\ in the years from 1808 to 

1002, when industrial alliances were formed nail 

regard for legitimate basis of profits. Promoters and 
k advantage -:' tlu- r.i.-- 

i-i .ml fraiululent schemes 
the inve^tinR public. The "silent panic" of 1903 

358 Indus triil Hi 

/" the l"nitt\: 

ON Iru.t. 



Trusts of 

Ch. Ill 

Kept. In- 
dust. Com., 
I. 39-57, 74 
-93, 190-205 ; 

xiii.lviii Ixiv. 

The Amalga- 


Kept, on 
the Anthra- 
cite Coal 
Strike. 1002. 






Rept. on the 

Beef In 


Ch. IV 

Kept. In- 
dust. Com., 
I. 136-143. 

called a halt in many adventurous projec N. but the progress 
of centralized control wa> not retarded. 

Meantime, the outride public has found reason to com- 
plain of the effects of industrial monopoly. Consumers 
protest again-t an advance in pi 'nit with 

diminished cost of production and not warranted by im- 
i-d (juality of goods. The whi>ky tru-t. the plate 
glass combination, and the wire nail pool, for example, 
each has utilized its temporary monopoly of the market 
to force prices far beyond their normal level. The pro- 
ducers of raw mate-rial, the crude oil men. the toi 
growers, the cattlemen, etc.. are helpless when they have 
no choice but to sell to the agent of a combination, and 
they denounce the monopoly that reduces their returns 
to the bare cost of production. Laborers, brought 
to face with a combination, can have no recourse to an 
other employer, and they are driven to organi/e a counter 
combination, equally monopolistic, and to attempt to win 
fair terms by an artificial shortage in the labor supply. 
The strike of the Amalgamated Asocial ion of Iron and 
Steel Workers against the t'nited States Steel Cor] 
tion is a case in point. The endeavor of the men to 
secure the union scale of wages in all the plants represented 
in the combination failed because they had a strike fund 
of but $32,000 to oppose to the resources of a billion- 
dollar trust. The Anthracite Coal Syndicate has been 
more successfully opposed by the United Mine \Vor 
an organized body of 145,000 men. In two succc 
strikes (1900 and 1902) they have secured an advance 
of wages for master miners, reduction of hours for day 
laborers, and the practical recognition of the ju-tice of 
collective bargaining. 

The independent producers, moreover, both the i 
concerns that refused to enter the combination and the 
small industries that :i<uL'li to be ignored. 

have fared badly at the hands of the monopolies The 
power to regulate prices has been u-cd to drive 

>rs from both central and local markets. Tin wreck 

Contemporary Prvblmu 359 

of v rprfsei has meant the closing of plants, the JU 

i.andthewa rcpreneur JJS 

the Standard Oil ch. DC. 

; .any, occasions! by the unsparing and unsorupuloui 
zeal v. it-pendent refiners were cleared from the 

endeavor to prevent induMrial monopoly 
Antitrust Legislation. Put)! 

e legislation During the years 1889 to 
1804 states and ries enacted laws 

inlaxvful, and th. 1891 

declared "every .hination in the form of a jeak* 

or otherwise, or con>j pJUbkS? 

commerce among the several llegal and its pro- ch. xi. 

it companies, but. ^Herman. 

i- a major t stock of each company was held by n 

r another of the original trustees, i< interest Ret 

was perpetua ist reorganized as the * 

a mamn ora- 

t $50,000,000 tit in the stock of the con- 

'tnpanies. I >rporated as Mooume. 

a single cor- %?<,* 

poration rapital .f S^.cxx>,ooo, y ch. V/VL 

case, < ."n was <|uitc as effective under the new 

.o general endeavor to imjM>^ >tringent requirements Griffin. 
in tb : corporate liniitations has been negatived by Jjjj 

the indulgent |> lcrse>', 

Delaware, and West \ 

and taxes, the absence of specifications as to character of 
icss or amount of capital stock, the secrecy possible 
r lax administration, have rendered the-e three states 161-174. 
an asylum for monopolistic corpora 

1 corporations hold chartt < or an- TbeTnot 

other of the><- jurisdictions. \ - ^orporated in 

. i> at li 1 

ng short of a Federal 

360 Indus t, '<>;T <if the 




The Addy- 
ston Pipe 



of the 
rt of 
the I 

incorporation law can prevent injui '^nations. A 

bill drafted by Attorney-General V <.m and sub- 

mitted to Congress in 1910 provide* that companies of 
more than $100,000 capitali/.ation may incorporate under 
Federal law. Advocates of tin- measure believe that the 
additional prestige accruing from I ! charter 

and the immunity from state regulation will induce Un- 
well-established industries to take advantage of this 

The effort to penalize restraint of trade ha- been more 
successful. Contracts aiming to curtail production or to 
fix buying or selling prices violate the common 'law and 
are nonenforceable. Statute- defining thi and 

affixing pains and penalties have been passed by 
thirty states, but the transaction Usually transcends 
jurisdiction. Under the Federal Anti-trust Act (1890), 
" every person who shall monopolize or attempt to monopo- 
lize . . . any part of the trade or commerce among the 
several states" is deemed guilty of a misdemeanor and 
liable to fine or imprisonment, the goods in course of 
transportation are forfeited, and the injured party may 
recover threefold damages and the costs of suit. The 
attorney-general and the United States district attorneys 
are authorized to institute proceedings against unlawful 
combinations in restraint of trade. Most notable of the 
anti-monopolistic decisions are those against the Addy- 
ston Pipe Company, the Northern Securities Company, 
the beef packers' combination, and the Standard Oil 

The Bureau of Corporations, established (1003) under 
the United States Department of Commen < ibor, 

is authorized to make "diligent investigation into the or- 
ganization, conduct, and management of the business of any 
corporation, joint stock company, or corporate combina- 
tion engaged in commerce among the several -t 
and to gather such information and data a> will enable the 
president of the I'nited States to i, mmendations 

to Congress for legislation for the regulation of such com- 

Contemporary Problem* 361 

mcrc< i m mediate outcomes of this provision ire the 

ts on the U-ei industry, the petroleum industry, the 
tobacco combination*, the lumlxrr trade, etc 

The Organization of Labor 

The Noble Order of the Knights of Labor was founded Wright. 

r>9 by a r Philadelphia garment cutters in the 

hope of uniting all -wage .earners into one catholic body, 

occupation, sex, creed, color, or nation- Ubor. 
:ntil iSSi, however, when the pledge of Wright. 
secrecy was set aside, did the society a- ional im- 

portance. The membership in 1881 was 500,000, in t T 5.. 
1886, 1,200,000. The objects proposed by this all-em- CkXDL 
bracing organization were the reduction of the hours of McXcin. 

x-curing of protective legisla- ^ 
tion for laborers in factor . and workshop, 

recognition of employers' liability I'.-r accidents, a weekly ^ WfJ T 
pay day, the making of wages a first lien on pit* xm 

arbitration of lal>. *, the establishment of state 

and national labor bureaus, the single tax on land, etc JjJJ 1 c ln " 
The degradation <> ngmen by the nL 

m|>etiti<n with free labor and by 
nation of laborers under wage contract, was ^^ 

former generation < rs. In .1 injury Labor and 

the concern of all," and in its appeal to UM Jj^Sfao 
ballot for redress p, the Knights of Labor may ofUbor. 

be compared t. the \V>ri Their r- 

\ by local icral assemblies was, how- T| ||||B| 

it of any previous labor move- Amokaa' 

i represei t. The WOAM. 

Curate a new but ' 

licans or Democrats or Populists, as 

and measures might determine, and they attained 

e bodies. The estab- ^ 
li-h -he t'niteil States Bureau of Labor and of vn. Ft. I. 

several state boards of arbitration, Itginltrtftti restricting 

362 Industrial History of the Unite t 

Rept. Ford 
Com. oo 


The South- 

dust. Com., 




Kept. In- f 
dust. Com., 


I't I.IO&-IOO, 


the labor of women and children and requiring biweekK 
payment of wages, tin- Federal la\\> prohibiting tin- im- 
portation of contract labor and limiting the immigration 
of Chinese, were in good measure due to tin- agitation 
carried on by the Knight- of Labor. 

While their t -haracteri>tic method was legislation, the 
Knights did not abji; -ral stri 

conducted to a successful tinish by aid of a tax levied on 
the whole membership, but the disastrous strike of the 
employees of the Mi >souri Pacific Railn greatly 

discredited the order in the eyes of the public and 
rise to internal dissensions that undermined it- >trcngth. 
In 1896 the Knights of Labor joined in tin- agitation lot- 
free coinage of silver, and the failure of the Democratic 
party farther diminished its inlluence. Its membership 
has declined to but a fraction of its former strength. 

The American Federation of Labor originated in a com- 
bination of already existing unions, such afl the Inter- 
national Typographical, the Iron and Steel Workers, the 
Cigar Makers, the Brotherhood of Carpenters and Joiners. 
the Brotherhood of Locomotive Engineers, etc. In 1881, 
the year of its origin, the American Federation of Labor 
represented 262,000 wage earners; in 1886 the member- 
ship was 316,000; in 1887, 600,000, and at last account 
the membership exceeded 1,500,000 men. In distinction 
from the Knights of Labor, the American Federation 
encourages organization along trade line-. It i- an 
affiliation of national unions in which each society retains 
full autonomy. The annual conventions and the I 
tive Council make general regulations and recommenda- 
tions, but these have no binding authority over the in- 
dividual trade organizations. In case a strike i> appr 
by the Executive Council, financial aid may be ordered 
and the federated unions assessed for a limited period. 
Tin- possibility that aid may be withheld ha-> u-ually 
served to deter the unions from undertaking unwarranted 
-trike.-. The influence of the Executive Council and of 
President Gompers has been generally conservative, and 

Contemporary Problems 

the American Federation has consistently avoided political 

iom|>liiution>. rrlu-in^ I-. lr. l.irr LT ..r .IK.ISIM lOdtttHB, 

ingle tax, free coinage of silver, etc, and refraining from 
any attempt t.> to its members politically. The 
leaders have held to the declared purpose of the organiza- 
rr employment and the means of subsistence 
less precarious by sr the toilers an equitable 

statistics. One of the first undertakings ,: 
t-d States Commissioner of Labor was the colh 
of at the causes and results 

of all thr Mrikes that had occurred in course 
tcenth century The report of iS> it-. I in 1894, ( 

1901, and 1906, gives full statistical data for the years 

irom I.VM to datr. 


KE STATISTICS, 1881-1900 

!, .. ,., ,. 

n .r-iTi..s 














38.09 SutiAia 



55.24 Abtlnct, 




59.19 '9^ 








' 4 f) 






4' 4; 





, 1.075 








11 H 









; | |0 

hurin- t!u \e year period there were reported 

36,757 strikes, involving 6,728,048 employer- >s a * 

i larger quota thai is period could show, 

were full data available. It i> .;;. uant that strikes 

364 Industrial History <>/ the Unit 


< )rL'.ini/i-cl 

1 ..-trr, 


Rept. U.S. 
Strike Com- 
miasion, 1894. 


Thr Chi. .IL-O 

characterize the years of business prosperity, <-.. 1880- 
1891 and 1899-1003. Tin larger number of lockouts, on 
the otluT hand, took place in years of depression, e.g. 1886 
and 1893, 1903 and 1904. 

The proposition Mrikes an- likely to succeed on a 
rising and fail on a falling market may l>e demnnM: 
from these data. Thr proportion <: Fulstrikfl 

57 per cent for the boom period 1881-1883, and for the 
highly prosperous epoch, 1896-1000, tin- >uccessful M 

ill of the total. In the years of depre in 
following on financial panic there i>. on the other hand, a 
notable shrinkage in the proportion of successes. The 
figures show, farther, an apparent increase in the ch 
of success. Of the 1500 strikes recorded for tin- iir>t 
eighty years of the nineteenth century, the result- 
known for 1053. Of these, 30 per cent were successful, 
15 per cent were compromised, and 55 per cent were un- 
successful. Of 3002 strikes occurring from 1881 to 1886, 
46.5 per cent were successful, 13 per cent were partially 
successful, and 40 per cent failed. For the twenty years 
from 1881-1900, 51 per cent were successful, i ; per cent 
partially so, and 36 per cent failed. Since IQOI, the most 
prosperous year of the present decade, the proportion of 
success has declined. 

With experience and the sense of enlarged responsibility, 
trade unions have learned caution, and a well-disciplined 
union will undertake a strike only when suc< 
ably sure. The money cost of a strike is usual! 
for the men than for the employer. The loss in wages by 
strikes for the period 1881-1900 was $258,000,000, more 
than twice the losses accruing to employers, while the 
assistance rendered by other labor organi/ations during 

-ame period amounted to $16,000,000. The trade 
union with no strike fund has slight endurance. The 
treasury of even well-established organi/alion< i- fjuickry 

isted. and contributions from <>u 1 

are not a permanent reliance. The employer, on the 
other hand, has, in these days of combination, a large 

reserve capital ; a will avoid a strike and the 

IOSICTI and embarrassin .tilled orders, 

an issue, will ' a finish. I v- Pullman K 

!>loyer as well as employee will take 
lensc of a cherished j.- 

re intelligence and fairness characterize both em- 
r and employed, the toilet live bargain is advantageous 
to both parties. e of ' 

1897, delegates of the bituminous coal i 52?"cp 

the ..peralor^ in inaml OOOfenaOC t--r the adju-tment of \ii 
a wage scale a: hundred thousand men. The PiJ.iofr-ic*x 

anthracite miners attar same result only after two ^ 

bitterly contested strikes and the int an See Index. rat i. ixsion ap ' Roose- R n 

As individuals the men u hey can 

.ns \\itii -ze-scale employer 

uniform terms. The em- 
ployer, on the other hand, has more security in dealing 
with an organized than with an unorganized both 

he success of tin bargain that 

the terms of employment be guaranteed by \\ritten con- 
tract, and that breach of agreeni* r side be 
made punishable l.y tine. > rease the 
responsibility of trade unions by legal incorporation has 
been urged as a means of r the enforcement 
of the laU.r contract. 

iticism of Trade Union Methods. Aside from the 

table antagor nterest between i and 

employed, opposition to labor organizations arises from 

the means used in prosecuting their ends that C.s. 
them into conflict with - arties. Hostility J 

Breakers, for example, has frequently taken the 

form of persecution. U-llinerent : \ and bodily 

ir\ wrought to person or property serves 

.::i. >:i under condemnation of public opinion 

he law. Ortl- be restored l>y j>olice au- 

md, when this fails, \v the intervention of state 

366 Industrial History of the L 'nitcd S 


Mca.l Stnkr. 
HrniK Tin- 

Labor. Ch. 


Indust. Com. 



Hall, Sym- 
Strikes and 





and even national troops; l.ut breach of the law on the 
part of employers i- orally to be condemned. 'I he em- 
ployment of Pinkcrton men as a private police force has 
been declared a penal oi'fen-e by >cveral 'Nature-. 

The boycotting of obdurate employers. M ab labon 
and nonsympathizers who j)atroni/t- boycotted cono 
i> the frequent resort of a striking union hard beMead. 
This i> a dangerous weapon, >ince it alienates public 
pathy and may involve tin- union in le.iral coin 
The writ of injunction has been utili/cd by ernph )>: 
forestall attacks on person or property, and it is some- 
times the only means of maintaining peace, as in the 
of the CcL-ur d'Alene miners' strike; hut this a.iraii, 
weapon that is likely to infringe on the rights of citi 

The sympathetic strike is another form of trade union 
tactics, the fairness of which is hotly disputed. Without 
grievance of its own or any hope of gain, a labor union 
may order a strike in support of the contention of an 
allied organization. The fact that this may be an :. 
self-sacrifice performed in the interest of brotherhood and 
the general welfare of labor does not mitigate the injustice 
to the employer, who is involved in a controversy in which 
he has no concern, the arbitrament of which he cannot 
influence. Thus the American Railway Union struck in 
sympathy with the Pullman Car Company's empl 
and involved the traffic of Chicago and the- Middle 
in a disastrous tie-up ; thus the Chicago Team-ter-' Union 
refused to carry goods for a mercantile establishment in- 
volved in a Garment Workers' strike, and, by consequ- 
for the business houses that had dealings with the boy 
cotted firm; and thus the organi/ed trades of Phila- 
delphia stopped work in sympathy with the striking .-treet 
car employees. The failure of these protracted sin: 
must tend to convince labor leaders thai ihe sympathetic 
strike should only be undertaken as a last resort. 

The ri^ht or wrong of the union or clo>ed -hop 
been vigorously debated in recent years. A fully estab 
li>hed labor organization will always endeavor to exclude 

Contemporary Problems 367 

n the shop" t* control. This 

is essential to the labor monopoly on which the 
rpends for the rnforcemetir rm wage 

and other regulations ; l>ut it is protested by the employer ai$-ji 7 . 

management of his business is wt 

there)' out of his hands. Only when, as in the jwi L'a 

case of the cigar workers, the able to offer as 

a trade label that has market value, is the point 
readily conceded The dosed shop is said to be un- 

van and un i i to da*. Com- 

mion in order t obtain empl- 

trade uni>ni-t holds that a man has .,<!*. 

advantages in the way of higher wages and shorter hours Brook* 
secured liy um who will thing to the JJfJ*"^ 

fund* ai 

sewing trades are |*- uiiarly liable Repc. la- 

hands of nonunion laU.r. l)ecause theirs is an unskilled d*, COOL, 
trade, perennially immigrant laborers JJJl^ lt 

accustonuxl to a low standard of living and ready to in.i 

:.r any pay. In spite uf the persi- 
many years, the Garment Workers have 

gener union shop and ihr union label. Makm'*" 

Employers' Associations. An inimitable consequence Strike. 

re efficient organizati i!x>r has been the JjJJ^SjL 

c :n t.i nation of employers into a defensive alliance. The 

UU>r union attempted in Boston brought about .-s s 7 j. 
(1825) a unin >f H<tnn merchants, who pledged them- Andrew* 

ilkers, and gravers to 2foTEm- 
Mihmission or starvation," and pledged $20,000 as a fight- pioyen' A*- 

nd. In iS;> one hundred and six merchants and >ori>rto "*' 
iwners of Boston agreed to "discountenance and Luther. 
check the unlawfu n formed to control the 

freedom of individuals as to ^ ot labor." In 1872 

f.ur humlml employers of New York City organized to 
resist th< t, agreeing to contri 

$1000 each t" ihe deien^. fund, and in iSS 4 the Master 
Huilders Associati* York was organized to resist 

a bricklayers' strike. A dozen or more national associa- 

368 Indnst) .v/j of : 

l.r\ .l-MMir. 



of the employers of tin- variou- trade- wen act on 
foot in the last quarter >l" tin- nineteenth imtury, and in 
1903 several national associations unhid to form tin- 
Citizens Industrial Associat ion of \i iiicluomj 
Sixty national and three hundred and ihirt y-!i\ c local 
organizations. The objects of t hi- it deration ..f rmpl. 
unions, as published, are to assist the constituted ant 
ties in the maintenance of order, to proi 

...141- harmonious relation- he! 
employees on a bu-i- of equal ju.-tue to both. 
employers in their efforts to maintain indu.-trial p 
and to create a public sentiment in opposition to all f' 
of violence, coercion, and intimidation. The ('it 
Industrial Association does not deny the beneficent p 
hilities of labor organization nor the advantages of arbitra- 
tion and collective barjzainin^, but propo-. :nbat 
the abuses of trade unionism as represented in arbitrary 
and violent action. Reassuring evidence of a more 
rational relation between labor and capital may be found 
in the voluntary advance of wa.uvs recently made by sr 

,;'Vc','l890'91 '92 '93 '94 '95 '96 '97 '98 '99 1900 '01 '02 '03 '04 '06 '06 '07 


Hour* ol Work 
Number o> Employ**! 
R*U!I Prlcss ol Food 

Relstive Figures 1800 to 1907 
United Sfste* 


R*lill* Wig*i pr Hour 

-_o_RUII* Hours ptr Wtk 
Rlst>* Numbs, ol Employ*** 

,!.(! Prices ol Food Wslghlsd 
According to Avs'sg* Consumption 
In 250 7 Workir U> F.mlllss. 

'sms 369 

eastern railway companies and by the United States Steel 


The tide of immigration has been steadily rising during Rcpi. of 
the period un 00 Ol the epochs J 

isincss depression, the average annual immigration 1**^. 
KM approximated five huini and since 1880. The tta. 1909. 

numler of arrivals dur last three decades of the 

h century an. 746,000, a sum *1 

rxieetU the i. n t^ure- iT the Iilty yCMl prr\i..u-. 

h century, the annual 

inflow has steadily increased from 448,000 in 1900 to 
1*385,349 the high-water mark in 1907-1004. The 
depression of 1907 reduced the number -rants to 

782,870 for 1008, 751,786 for 1909. 

A notable change in the ch. the immigrants 

has taken place in the past thirty years. Immigration 
Great Britain. Ireland, and Germany has fallen off, 
that ; rway and Sweden ha rcased, v. 

uq)lus popul.r |>c has been mi- 

tt to the States in ever increasing numbers. 

;>easants of Italy, Greece, Hungary, A 
mania, Russia, Lithuania, Armenia unhaj tries 

< wages are low and taxes high a: e oppor- 

tunities for land ownership are exhausted throng the 
steerage quart .mxatlantu ^tcanuTx and the 

i-d States ports. The im- 
migra i southern and ea 

1008 inclusi\ e made up 55 per cent of the total European 
for that period. 

rse late comers bring little money in their pockets, 
fully half of them arc illiterate, and the majority are un- 

I laborer their way to Unkmtaa 

the factories o: the mines and iron works 

ins and flour 
mills and abattoirs of the up|xir Mittssippi Valley ; but 

370 Imtustrial History of tht- { 


NYirr. K-X in 
the United 




U.S. Census, 
1900, V, 

Atlas, 1900 
Plates 55, 62. 


the K leWS, tin- Syrian-, the Italian-, and thr (irrrks 

settle down at thr ports of rntry I K and H 

or are dropped at the railway terminal-. Cleveland, 
Pitt-burg. Chicago, and St. Loui>. Only a -mall propor- 
tion of European immigrant- r-a h the Southern ftt 
For example, hut three and a half per cent of th>-e 

in 1908-1909 were destined for the cotton 
>pite of a systematic effort to procure Italian lahor. Tin- 
presence of four million negro laborers serves to di 


30, 1909 

Armenian . 


French . . 


111 . . 

Bohemian . 


( irrman 


Polish . . 

Bulgarian . 


(irrrk . . 



so . 




Roumanian . 

Croatian . 


Irish . . 

.SL 185 

n . . 



Italian . . 




Dutch . . 


Japanese . 


Stotrh . . 

^h . 




Spanish . . 





Syrians . . 

Ch XXI. 

immigration, and the freedmen remain the lahor reliance 
of the South. Whether wage earners, tenants, or land 
owners, they are producing the major part of the cotton, 
tobacco, rice, and sugar crops to-day. \<> 1 than 

the immigrants to possess themselves of land, th 
are rapidly becoming a race of peasant farmer-. In the 
forty years since emancipation, the freedmen of Virginia 
have acquired 993,500 acres, those of (ieorgia 1.075,000, 
and one fourth the colored farmers of the I'nited Si 
now own the land they till. In the far West, Chi 
and Japanese laborers have largely preempted the field. 
Only six and a half percent of the European immigrants 
arriving in 1008-1009 indicated an intention ^ out 

to the Cordilleran or Pacific coast states. 

Derived for the most part from lands where rates of 


Problems 371 

wages and standards of living arc much leas than in the HO. 
<l States, immigrants come into direct compel r 

echanical processes render it easy to find occupa 
In a few weeks or months the newcomer has acquired as 
i skill as the old hand, and, since he will work for less 
likely to supersede him. The sweat shops of j 

Russian Jews; the anthracite coal mines are worked 
by Slavs and Italians ; Bohemians are tilling the corn 
lands of Kansas; Swedes are takim wheat farms 

iinesota an. 1 t h. I >akotas. These European peasants 
have performed the tasks that were too heavy or un- 
pleasant or low p.: -act American workmi 
have built our railroads, developed our mines, manned 
kc ovens ai foundries, cleared the forests, 
tilled the prairies; they have contributed enormously to 
the axplototioa d th- resoaroei "i the ooantiy. H .. to 
leave them free to do t entailing some degra- 
dation of the American standard of living, is the economic 
phase of the immigration problem. 

Legislation. The military requisitions of the Civil 
War drained the country of laborers, and the agricultural 
ts needed farm hands, th< towns operatives, 

r the \ Encourage Immigration approved s*Cot, 

July 4. 1864, the agents of American employers were 
allowed to engage laborers in foreign lands and to arrange 
for their transportation to this .imi the contract 

pledging wages in payment of charges was declared valid 
in law and therefore en fort H- act was repealed in 

1868, but the practice of importing laborers under engage- 
ment to work at specified wages continued Whdpky. 
arrangement, thousands of Italians, Pole ' ingarians 
were imported for work railroads and in the mines 
and factories of the Northern states. Abortive v 
were even made to ship laborers to \ fields of the 

As the social, political, and industrial effects of unregu- 

372 Industrial History 


and Immi- 

: MI 

Kept. Ford 

(.n Contr.ut 

soth Cong., 
i st Session, 
Misc. Doc 
No. 572. 

Kept. Indust. 

647-67 i. 


Rep. Indust. 
Com., XV, 

and Immi- 
Ch. XI. 

lated immigration became apparent, tin- hospitable atti- 
tude of the public was converted to suspidon ami alarm. 
Tin- Alien Passengers Act of 1882 exc luded "convicts, 
lunatio, idiots, or any person unable- t. r himself 

or herself without becoming a public charge." and did 
much to relieve our pri>>n>. a-ylum-. and es of 

an undue burden. It did not. however, attempt t< pre\ent 
the degradation of our economic standard- l.y the 
petition of employees engaged abroad to won 
wages. The agitation against contract labor under! 
by the Knights of Labor and other trade union 

ad in 1885. The Alien Contract Labor Law (1888) 
rendered it unlawful for an employer to prepa\ 
or in any way to assist or encourage the immigration of 
foreign laborers under wage contract. The enforcement 
of this law has been attended with considerable difficulty, 
but some seventeen thousand laborers were excluded 
between 1890 and 1909. It is probable that rigid in 
tion of immigrants on this account prevents tin 
tion of many such contracts, but it does not materially 
check the importation of laborers under the padrone 
system. Thousands of Italians, Greeks, and Syrian- conn- 
to this country under binding obligation to men of their 
own race, who prepay their passage and, under various 
pretexts, farm out their labor, collecting a pert 
the wages paid. This form of peonage i- liable to { 
abuses which are difficult to discover and to pumMi. 

On the Pacific coast agitation again-t the degrading 
influence of alien labor has been directed again>t M 
and Orientals. The feeling against Sonori. very 

strong in the days of the gold rush, and they were 
driven from the diggings by the foreigner tax, 

reenforced by mob violence. The 220,000 Chinese 
laborers admitted to California be 1 ^49 and 1875 

were seldom tolerated in the mines, but tiny found 
profitable occupation in purveying to the DeceHitfc 
irold seekers. Their diligence, thrift, and indu 
skill rendered them dangerous competitors in held or work- 

Contemporary Problems 373 

shop, and alt! ; iey usually returned to China 

accumulated earnings, there were Mill, in 1876, one 

lestials in California. The Burlin- 

game Treaty (1868) had accorded to the Chinese people 

oluntary immigration to the United States 

with th- privileges allowed the most favored nation, a 

concession essential to the free admission of Americans to 

i. This policy was soon challenged !> the labor 

party, and California politicians were obliged to advocate 

\ hud induced 
federal government to negotiate a new treaty stipu- 

the immigration of Chinese laborers. Pressure 
was then brought to bear upon Congress sufficient to 
secure the passage of the Re Uw (1882) forbid- QLXL 

ding for .ir- th- admission of Chinese 

laborers "skilled and unskilled, and those engaged in 
mining." By the Geary Act (1892) the policy of < 
sion was adopted for a second ten-year period, and t he 
ese already in the country- were required to register 
and submit to the Bertillon record, as a means of idem in 

n. In iSoX this legislation was made applical 
Hawaii and the Philippines, and these new dependencies 
were deprived of their most reliable labor force. 
The rigid regulation emigration officials render 

laborers who have visited China, and the ad- 
mission of the exempted classes, travelers, students, and 
difficult, and by consequence, a 
ican feeling has developed in China. 

Boxer revolt was directed against all foreigners, but the U.yi .>O3 was declared against the 

United States. The great im|x>rting companies united in 
an effort to exclude American good- inese markets, 

and there was a marked shrinkage in our Oriental trade. 
Sales of principal foreign pur- 

chaser, shrank from $16.000,000 in 1002 to $4.000,000 in 
1904, and our total exports were reduced from $29,722,000 
to $12,862,000. Some conciliatory modification of the 

374 Industrial History of the I ' . itcs 

Geary Law was urged by the textile interests of t! 

and Southern Mates, by the grain 

and Oregon, and - mployers of labor all along the 

Pacific coast. The I-A< lu-ion Law wa> reenacted 

but the petty persecutiMii^ that had attended it- ei, 

mcnt were abated. 

The number of Chinamen now resident in the United 
States is but 70,000, and their place in the labor supply 
f the Pacific coast is being taken by immigrant- from 
Am. Acad. Japan. There were 25,000 Japanese in the I'nited Sf 
j', 1 " -" : : 1 in 1000, and they came over al the rate of 15,000 a 

"3- 387'-' ^ n * ne ncx *- n " nt years. Original; rent of 

men were agricultural laborer>, and they came unde: 
tract to immigration companies made responsible by the 
Mikado's government for their safe transportation and 
Kept. In- subsequent welfare. They proved thrifty and industrious 
dust. Com., but were accustomed to earning one tenth of tl, 
XV, 757. paid to American laborers of corresponding skill, i 

of these new competitors could not be accomplished by 
mere Congressional enactment, for the |a; >vern- 

ment i> Wronger than the Chinese and is able and ; 
to guarantee to its citizens the liberties allowed to any 
Kuropean people. Hy the treaty negotiated in 
only certain classes of laborers may be admitted to tin 
continental territory of the United mu-t 

-how pa port- from the Japanese emigration of 
lying that they are "former resident-." "pai 
wives, or children of residents," or " settled agricultir 
i.e. already in possession of land in thi> country. 

(H XI 

Exploitation of Natural Resources 

Destruction of Game and of Fur bearing Animals. To 

l*an settlers, America seemed a ness. 

Appalachians and the Coastal 

Plain were heavily wooded, with only an occasional opening 
im-d tin- stM. The dense forest growth 
afforded refuge to wild U-asLs and treacherous savages, 
and was a haunting terror. It was the white man's : 

car away the trees and reduce the wilderness to 

ation as rapidly as possible, and * lonist set 

about this task with zeal one- 

lessh unks and underbrush \ . in heaps 

<d as useless waste. The giants of the forest were 

nir.ilrd a: die stan<: h- home 

government to conserve " mast tree- nterest of the 

navy was one of the grievances of the colonists against 

h rule. In the torests of the Mississippi 

Valley, the right of a free-bor: in to destro\ 

timber was exercised without -tint, and the neighborhood 

of every settlement was stripped bare. 

.Is were regarded with like disfavor, and 
slaughtered ruthlessly. Not only dangerous beasts, as 
es, bears, and wildcats, but useful animals like the deer, 
noose, the elk, were driven from the la; 

^'ame savored of Old World privilege 
and was n<>t :- )>< tolerated. Birds shared the fa 

ds. Quail, partridge, wild ducks, wild pigeon 

- sustenance and 

readily adapt their habits to a cultivated 

376 Indus trial History of the I'nitcJ Sf,: 

country ; hut they were sin it in season and out of sc 
with no regard for propagation. The wood pigeon, tin 
delicious of game bink wa> killed for -port. Jame- Hint, 
tin- Scotchman, who went down the V 
describes the process: "The woods abound in pige.. 
small species of fowl which migrates to the -outhwanl in 
winter, and returns to the north in spring. Their numbers 
are so immense that they .sometimes move in clouds, up- 
wards of a mile in length. At the time when they are pass- 
ing, the people have good sport in shooting them. 
flock frequently succeeds another before the gun can he 
reloaded. The parts of the woods win-re they no>t are 
distinguished by the trees having their hranche- broken off, 
and many of them deadened by the pressure of the myriads 
that light upon them." 

Laut, The Fur-bearing animals, too, have been rapidly exterminated. 

Id's Fur The b eaver> the trapper's most profitable prey, vrafl driven 
from one hunting ground after another, until the 
was practically exhausted. They disappeared from the 
New England streams toward the end of the seven i 
century, and from the Champlain country but little later. 
At the headwaters of the Mississippi and the Missouri 
where beaver dams were abundant in the time of 1 'ike and 
Lewis and Clark, the hunting grounds were exhausted when 
settlers arrived. The rivers of the Cordilleran area, east 
and west, whose beaver dams furnished a livelihood to the 
engages of the American Fur Company, were trapped out 
by the middle of the nineteenth century so that the hunters 
abandoned the industry and took to farming. The re- 
maining isolated breeding grounds have been curtailed by 
lumbering, sheep-grazing, and agriculture, until the b 
is a curiosity hardly to be seen outside a zoological park. 
The catch of 1870 was 225,000, that of 1800, 82,000, that 
of 1900, 8000. In marked contrast to thi- prodigal de- 
struction, the conservative methods of the Hudson's Bay 
Company have maintained the heaver grounds of Cana- 
dian streams at full hearing capacity. No trapping i- al- 
lowed during the spring and summer, the br- < ason, 


the females are never killed, and cubs under one year are 

taken. By fontftqqgnCT the trade of the i 

ipany is greater to-day than in the period 
The journals of the explorers give marvelous accounts 

< big game that roamed the western plains in search of 
water and pasturage. In the vast stretch of upland be- 
tween the Missouri and the Brazos rivers, hundreds of 

sands of buffalo, deer, and antelope throve and multi- 
plied, furnishing easy prey to the trapper's rifle. To the 

the buffalo was the most useful 
of animals, furnishing at one and the same time food, cloth- 

and shelter. The meat was so nourishing that it was 

to have i ropertics, the skin dives 

and cows was suitable for coats and blankets, while the 

i hide of the bulls made admirable tepees. The 
resourceful Joutel, the leader of La Salle's Gulf coast 
colony, used o\-er his huts. Explorer, trapper, 

and emigrant alike subsisted on the huffalo. hut the animals 
were slaughtered, none the less, with reckless glee. Cows 
were kill Deference because their flesh was more 

r and their hides more pliable, and usually nothing 
hut the haunches was eaten, the carcass beii 
carrion crow. When t railroad was built 

across the pr y a few dwindling herds remained, 

and these made up for the most part of disconsolate old 
hull -ts were accustomed to display their prowess 

by firing from the car windows at a chance buffalo. 

The sea otter has almost disappeared from thr ! urScd 

Coast, the catch of 1005 being hut -NO. while the nur 
of seal is rapidly diminishing in Alaskan waters. In 1874 
the seal herd was estimated at 5,000,000. In 1808 the 
mate was 1,000,000, and in KX>S, The annual 
00,000 has dwindl< xx>. 

ted States represents a greater 

money value than ever before, because ive risen 

with the pressure of dema be market 

value of beaver, seal, and marten have made these furs 

378 Indus tn<il History of the Unite,! States 

ies of luxury, and there is an increasing sale for squirrel, 


pen "1 tlu-se interior I'urs get the- prices that used to he 
paid for bca 
National 1 he fishing grounds of the Atlai. 

been exhausted long since but for the work of the 
national fish commissions. I-ish hatihcrie iin 

i-d at convenient stations, and the i 
with all marketable varieties and many of the gamr 
Without thi> artificial renewal, the- .supply of cod. herring, 
shad, salmon, and lobster, would ha\ 
the vanishing point ; hut tin- combined efforts of 
and national bureaus can hardly keep pair with the 
less methods of the fishermen. Hook and line have 
been superseded by seines, and these in turn by weir 
traps. "The shad fishery was undoubtedly maintained 
for many years by hatching operations solely, but recently 
the fishing has become so intense that most <-f the spawn- 
ing run of fish are caught before they reach the spawning 
grounds, and a sufficient supply of eggs for the hatcheries 
cannot be obtained." The salmon, the royal fish so 
sedulously guarded in old Europe, has been driven from 
the Atlantic coast. On the Pacific coast whe e, within the 
memory of white men, the salmon run up the river 
so heavy that fish were crowded out of the water and could 
be caught in the hand, the canning industry is thre; 
with extinction, because the school- fight -hy of the fishing 
grounds. The Indian's spear has been supplanted by 
wholesale methods, the gill net, the salmon wheel, and t he- 
fish trap. The annual run is rapidly diminishing, notwith- 
standing the fact that 180,000,000 spawn a< 1 each 
year in the mountain streams by the states immediately 
concerned, and as many more by the national government. 
National Exhaustion of Forests. The commercial method- of the 
Conservation g rea ^ l urn ber companies have proven even more de-tru- 
I. 51-73; l ^ an ^ e Droa d ax f th e pioneer. Wholesale 1< 

79-270, power machinery have swept ^\ the 

$47-581. more valuable trees, leaving only underbrush and scrub 


oak. The best timber was cut away from New England, 
New York, ami th< -|>cr Mississippi Yal v cars ago. 

ast forests of oak and pim- covered the Appalach- 
\\ north to south, and the hard woods of the 
lowlands have largely disappeared, and the aftergrowth induMry. i. 
and poplar is now being logged down ch.x>. ?. 

.voods do not furnish material 

^ of houses and ships; they are manufactured 

iiiture, and wood pulp. The white pine of 

real Lake region is being exhausted, and the output 

has declined 70 per cent since 1890. The pine barrens of **<* 

t h< ( .ui! states are now being invaded, and the vast forests 

sheltered the sugar plantations and orange groves 

hers " are being laid low. The boxing 

ng-leaf pine has weakened the standing trees, and 

icw growth has been burned out until one fifth the ^. 

forest that was once the pride of the Carolina* is gone, and 

the naval stores output has seriously declined. To-day 

structural timber, ceda- are being shipped 

from On The 

forest i 'acific slope have been depleted with reckless 

disregard <>ods, cedars, and Douglas 

n>s that have spci and years in reaching full 

n, are felled, sawed a . anked to the sawmill 

igines, and sliced into planks, boards, and 
Caving devices. 11 .the 

Eastern states the lun. - back on in: 

species, ai > tan bark and wood 

pulp 1Y means of portable m. 

c have been wasting our timber resources in this 

wood products has 

steadily increased. In spite of the various substitutes, 

-the consumption of 

timber has grown more rapidly than population. The 
result is a marked rise- in pruv. Siiue 1900 the cost of N*tkl 
pirn- lumlKT has increase . oak 54 per 

55 per c< itfas fir e> 

f>5 per cent, and yellow poplar 78 per cent. Fully 

380 Industrial History cf the United States 

thirds of thr timber felled nc\ tt the n 

One fourth of tin- tree i> lost in rutting and logging, from 
one third to t\v thirds is thrown aside at thr sawmill, 
while one third of tin- mill product disappears in seasoning 
and adapting for final use. Lumbering may fairly be 
regarded as the most wasteful of trades. 

National Fire is an agent of dot met ion even more to be feared 

Muer 2 tJon than the lumberman, and more than one third of our forest 

390-469.' wealth has gone up in smoke. The Indi. 

order to drive the game from cover or to outwit tin 
mies, and they are perhaps responsible for tin treeless con- 
dition of the Great Plains and the deserts of Ari/ona and 
New Mexico. But civilized man has exercised an even 
more blighting influence. Sparks from railroad locomo- 
tives and uncxtinguished camp fires, the heedless or in- 
tentional conflagrations started in bru>h piles, etc.. have 
caused incalculable damage. Since 1870, when data 
first recorded, the annual loss from forest fires has 
amounted to $50,000,000, and the loss in human lii' 
in other property is always grave. 

The devastated forest lands are unfit for agriculture, 
and the wreckage of the lumberman serves only to 
destructive fires. " It is stated by the Forest Warden of 
Michigan that forest fires (notably those of 1871, 1881, and 
1896) have done more to hinder settlement in the northern 
counties of that state than all other agencies combined." 

There are in the United States something like 65,000,000 
acres of forest land ruined by cutting and by fire, whi 
only be restored to usefulness by replanting the tree-. l\< 
forestation is a costly process, especially in an arid climate. 
Two thirds of the western slope of the Sierras, once rich in 
pine and Douglas fir, is now covered with a worthless 
chaparral growth. When the new growth is destroyed 
with the adult trees, the burnt-over area cannot be re 
to productive forest for many years. It i- estimated that 
20,000,000 acres of young growth is destroyed every year, 
and that the cost of replan; pontaneous crop would 

amount to $200,000,000. 

or Tiramr YBABS AGO; Wmrx Fit AMD YODN 

. . i . : 

C\ >* 381 

The indirect losses from deforestation are even move 

i ' 

s, soft maples, laurel*, and chaparral taking the place 
of oak, pine, and spruce ; there is inevitable erosion of th< 

10 washed away by the heavy rains, Nation*! 
;ig gullies and gorge* ; there is serious depletion of 
i he vegetable mold being burned out and the mineral 
elements washed awa rregularit 

xlream-ll.w i> |> t" U- ai..unled i.-r l.\ the uttin^ 
of the forest^ us of drainage basins. 

The snows, exposed t.. the full heat .: .juickly, 

and the run-off is speedy and dcM As a conse- 

quence we have a costly al' ng floods and 

summer droughts and a marked increase in the number and 
severity of snowsUdes and landslides. Our reckless j 
shows in shameful contrast to that of Switzerland, where 
14 ban" forests have been cultivated for centuries as a 

^< 1 .1.: lin^t a\ .il.itu }}r^. 

Our reckless as> ifmed to the growing 

forests. In 1007 buildings worth $250,000,000 were de- 
stroyed by fires, four !i: Ie. The 
1 S,ooo,ooo ; the Haltimon 
$50,000,000 ; < $50,000,000. We 
r million dollars a truc- 
md adequate precautions, but because of our careless 
> our lire dr; coxt u-n tinus as much as in 
European cities, and our fire insurance rates are twelve 

i hose of Great Britain. 

Depletion of Pasturage. The pioneers who crossed the 
Great Plains in the forties found them a t*>vine paradise 
during April .1 when the va ies of pasture. 

V.I with the gayest flowers, made a pleasing prospect 
ian and beast .'reat watershed rising from the 

Mississippi t.> the K.Hkies in an undulatiim pi 
abounded in native grasses, self-curini; ami highly nutri- 
tious : the buffalo grass of the river U>ttom-. the grama 
grasses of semi- ari i -grass of the mountain 

slopes. Lieutenant Pike described Texas as the most won- 

382 Indus triti I History 

\, ri.,r..,I 

Com., HI, 


AcUms, Log 
,,! .L Govbogr. 

Kept. Public 
Ltixif Com- 

derful pasture land in thr world. Tin- luxuriant herbage 
stood as high as a horse V belly and covered tin- level plain as 
far as the eye could reach. 1 < at tie a ml horses fed at 

large, grew fat, and multiplied, coining money for tin- Span- 
ish rancheros, \\lm had nothing to do but corral thr 1>< 
for an occasional matanza. The Louisiana Purchase 
us 300,000,000 acres of magnificent pasturage, free i 
comers, and the chance of making a fortune at publi 
pense was eagerly seized. Cattlemen and horsemen drove 
their -lock from point to point, seeking out water: 
and the best grazing ground. Thus was the wealth of the 
prairie converted into marketable crops. draft animals. 
beef cattle, wool, and hides. The old cattle trail ran from 
Texas to Montana, through Indian Territory. Kansas, ami 
Nebraska, and before the days of the railroad unnuml 
cattle were driven along this herders' highway to the ubat 
toirs of St. Louis, Omaha, and Chicago. 

Unfortunately Uncle Sam imposed no regulations upon 
the cattle barons, and under their rut hit -ss exploitation 
this public pasture land has been rapidly exhausted. The 
most fertile regions have been overstocked, the herbage 
trampled down and eaten to the roots, and the water holes 
ruined by careless use, until the old proportion of \ 
to an acre has been changed to two acres for a cow. The 
homesteading of the arable area has curtailed the range 
until the Great Plains have ceased to be a common 
pasture. The decade between 1880 and 1890 witm 
the heyday of the cattle industry in the South 
1890 a serious drought parched the pastures; thousands 
of cattle died, and many ranches were ruined. 
Dingley Tariff raised the price of wool, and a boom in 
sheep-raising followed. Sheep herders invaded the cattle 
ranges, and the pastures were eaten to the bone. The 
men had no legal title, but they endeavored to pro- 
tect their accustomed grazing grounds. Dispute- 
heated, and the controversy came to blows. Sheep and 
cattle wars were waged in Lincoln County, New Me 
in the Tonto Basin, Arizona, and in southern Wyoming. 

( MUftl .:/: ; 

The narrowing of ih< - inge hat forced the ca 

to have recourse to forage crop*, alfalfa, kaffir corn, 

cottonseed meal, etc Beef steers are now shipped from 

Tr\.i-ani Montana to Kaoiu .uM NYi.r.^u to be Eatfc nad 

he market, at a notable advance in cost The propor- 

>f food animals to population has been steadily d 

ing since 1890. Indeed, the figures for the past seventy 

years >h-.-A a ^r;i .in rr.i-r. 

HI M. i 


- PVU 




pw l 









1890 .91 




1900 .69 




The American dietary in 1840 was one half meat ; the 
proportion has now fal rd Nevertheless the 

has steadily risen, e.g. that of fresh beef as much as 
thirty per cent in the past t cars. 

The Exhaustion of the Soil is less spectacular hut 

less real than the curt isture and forest 

areas. A shrewd English observer, the author of American 

Husbandry (1765), called i to the reckless ex- 

he farm lands along the Atlantic coast, and 

need as criminal the careless methods then in vogue. 

His 11 >ns have long since been realized. Indian 

corn can no longer be grown on Cape Cod. the hill farms of 

New England the tobacco lands of tide- 

water ' he compara- 

1s of the West, the wheat fields of California 

Minnesota, show a 

bore 50 bushels per acre now averaging only 14 bushels. 


;. - 

!; .! 

4 i. 

384 Industrial History of the Unite, i 

Roberts. The Cause is not far to SCfk. Land ha- hern ahumlant 

and cheap in this country, while labor in the agricultural 
Ch. I.X.XI. regions has been costly. The fanner ha- undertaken to 
get the largest return per unit of lahor instead of per unit 
.nd. Thi- IT.- ruling with labor-saving 

hinery. reliance uj)on one product, and neglect OJ 
rotation. MJentilic fertili/.ation. subsoil plowing, drain- 
age, irrigation. The upendous. 
estimated that the 780,000,000 tons of silt carried 
down the rivers to the sea reduce- the productivity of 
the farms every year by the amount of $500,000,000. 
That this depletion is unnece-sary i> evidenced hy the fact 
that Old World wheat lands hear more heavily than ours, 
National _ e.g. Great Britain 32.2 bu-hels. (iermany 2.S bu>hel>, 
ice 19.8 bushels, Austria i;.S bushels, Hungary 
So; 17. 6 bushels, while our own average is i^.S bushels. Only 
in. * i<xs. t he peasants of Russia secure a lower crop return than the 
farmers of the United Sta 

Exhaustion of Mineral Resources has gone on apace. 
ciimV ' The bog-iron of the- Atlantic states was used up in t he ei.u'ht- 
I. OS-MO; eenth century. The resources of the Appalachian n 
** 476-403. are rt -achin<j the point where mines are abandoned b< 

of high-cost production, and we are drawing upon the seem- 
ingly inexhaustible supplies of the Lake Superior di-trict. 
The experts of the United States Geological Si; 
mate that at the present rate of output all the high grade 
ores will be exhausted within thirty years, when we must 
have recourse to inferior or less accessible depo>: 

Iron is a raw material that may be used over and < 
again, the wrecks of the scrap-heap being turned into the 
426-446. ' furnace; but coal, the great industrial fuel, is consumed 

for all, and there i- no means of re-toring the supply. The 
coal mines of eastern Virginia, whose development Hamil- 
ton thought wise to stimulate by an import duty, are long 
Roberts, ndoned. The anthracite coal- of ea-tern IVnn- 

( V i '' : I '; .mia -till produce 100,000 ton- per year, hut at steadily 

dustry. ch. increasing cost. Shafts mu-t be >unk deeper, and thinner 
I, 1 1 , 1 1 1 . i v. veins and deposits of lower grade coal be u t i 1 i /e< 1 . The cost 

Ttt WARI or not If ox : OLD Cumno IN BLACK Hott NATH 

Tin \\ v : i \ . KM I 


-a!>. YM\ 


Conservation 385 

of hoisting, pumping and ventilating apparatus increases 
as operations are extended. Hence the price of anthracite 
coal is advancing year by year. The bituminous mines 
1 soon reach t hep 

m, and we must then have resort to the lignite coals of 
the Dakotas and Montana. Geologists^ 

prcsri 1 1 put i he high grade coals cannot l.t bik 

hundred years. There has been a criminal Doail *- 
waste .ill-important t I he waste in mining is 

computed at sixty per cent, but this is reduced 
per cent in the best equipped plants. The wast 
Mini) n greater. Steam engines utilize about eiht 

percent of the coal they burn, i 
consumed in power plants is e> 

the e' -litin-j - utilize less than one hun<lredth 

part of the coal burned. 

The by-prod a i m i nous coal fields, petroleum 

and natural gas, furnish heat, light, and energy on t. >M| 

- than carbon. We have been using petroleum for j* WAtJ 
sixty years, and have already c<> 1,800,000,000 111.446. 

barrels. At the present rat 1 workable wells Rept. Burma 

will be exhausted by 1950. The output of the Appalachian f Corpo- 
area is rapidly declining, and the center of production 

ing toward Oklahoma. The demand for kerosene, 
lubricating oils, and all the by -pro.: r-y, is 

steadily advancing, while the use of crude oil as fuel in 
locomotives and steam engines h** just begun. 

Natural gas, a much more volatile substance than p< 
leum. is the most con\ pur- 

poses, being piped from the coal fields to distant cities and 
read I to consumers. This valuable endow- in. 4*5. 

we have thrown away wantonly, like boys at play. 
Men drilling for oil allowed the gas to escape, as an obstacle 
to production, or lighted the jet and watched it burn it- 
self < actual waste is estimated at 1,000,000,000 
cubic feet a day. Preventive legislati< :i in 

(liana, has come too late to con- 
serve the 'PPb'. w hile new communities have not 

386 Industrial History of tin- I 'nitcd .SV 

learned caution. The daily wa-tc from the Caddo 
>of Louisiana is suflScient to light trn citic- ..i' tli 

Nation*! The extensive beds of calcareous deposit in South 

JUUU4tio11 Carolina. Florida, Tennessee, and northern Arkansas havr 
m. 55*. furnished 30,000,000 tons of phosphate rock, tin- best- 
known means of restoring pho>phoric arid to our depleted 
soils. The roources of South Carolina and M<>ri<: 
approaching the point of exhaustion. while the | 

phate beds are being monopolized by mining 
Bulletin cates. The conservation of this important fertili/.e: 
:om - tiie utmost importance to our agricultural future. I 
Xl^ ' exportation be prevented, low-grade rock utili/ed, and the 
Phosphate new deposits just discovered on the public domain economi- 
(ally administered, our phosphate beds, the slow accumu- 
lation of geologic ages, will be exhausted within t 


National The mining of the precious metals, gold and si! 

* rv * Uofl per, lead, and zinc, was quite as heedless in t h 
.-i. of exploitation. In the " golden age " of California. 

less waste characterized the diggings from north to south. 
While the washing process was in vogue, fully half th 
face " dirt " was carried down the rivers to the sea. The 
maximum yield, $65,000,000, was reached within 
of the discovery, and the output from the diggings dwindled 
thereafter. Recourse was then had to quartz and hydrau- 
lic mining, the stamp mill and quicksilver amalgamation. 
The best mines of Colorado and Nevada are ^oinu r th; 
the same process of exhaustion. The Cripple ( 
Yukon discoveries and the cyanide proc 
production to $80,000,000 in 1902, and then the output 
declined. The development of new possibilities in 
fornia by the dredging of river wash, the opening up of the 
latent resources of Nevada, and the ru-h 
raised production to $94,000,000 in 1006. hut it i- probable 
that another point of maximum output has 1 

The Waste of Human Life. Even more criminal than 
the waste of material resources is the waste of human energy. 


Conservation 387 

The exploitation of human beings in factories and foundries, Nniod 
< railway service, is no lets ruthleift than 
lorests. Our annual casualty list is 
ional disgrace, being larger in proportion to the num- 

coal i example, the casualty rate is 3.5 per thou- 

sand, and thin among able-bodied men. In 100 
500,000 employees, 3000 were killed and 7000 injured 

considers that most of these men have families de- 
pendent uj >n their labor, the social wreckage seems appall- 

death roll increases from year to year, because 
: lines, the introduction of auto- 
>.s, undercutting machines, and electric transpor- 
tation, the risks are increased. This is a dangerous oc- 

md accidents ari oal dust 

an. 1 the explosion of fire damp cannot always be .1 
but many frightful disasters are attributable to the cr 
nal carelessness of men and management Boys under 
sixteen should not be employed underground, foreigners 
who do not understand t h<- I language should not be 
placed in stations of respon state inspec- 

hould secure that all possible safety devices are 

c among railway employees is even Rep 
terrible than in the mines, and here again casualties 
are on the increase. The number killed in 1888, the lir-t 
year in which such data were collected, was 2451. the 
number injured rive times as great. In i./o; the numb 
employee^ killed was 4534, a iured, 87,644, 

while the total casualty 1 nployees, passengers, 

and other persons was 11,839 killed and 1 1 1.010 injured. 
The Cuban War was not so dest t life and health. 

- and workshops are contributing their quota to 
this industrial waste. The poisonous fumes from ar>< 
le compounds produce blood poisoning ; th 
ritat in- .'.;:-! \d and glass are wrought 

t-nt.-r th.- throat and lungs and generate tuberculosis and 
pneumonia, and the quarries are no less inju The 

mortality among stone and marble workers is six times 

388 Industrial History of tJic I *;///<// Stti 

that prevailing among professional men. Lead poisoning 
is another industrial disease which afllicts painter- and 
typesetters and paint -mill rmployees. Dan-jerou- ma 
ihinery adds thousand* each year to tin- already long 
li-t of casualties, in whii h tin- young and \cntin< 
bear the larger proportion. An expert in vital Mati-tic^ 
has recently estimated the industrial lo>s accruing from 
these several causes at $854,250,000 per \ .\hieh 

half is represented in wages and an additional third in 
expenditure for illne>s. items which an- borne by tin- 
injured employee. 

1900. Utilization of Wastes in Manufacture. It is only when 
Manufac- man j s ( j ra lj n ,r w jth nature at first hand that he dam to be 
prodigal. The materials into which he- has put labor and 
thought acquire a market value and are consequent 1\ 
with care ; in the processes of manufacture-, therefore, waste 
has been largely eliminated. The refuse of the oil-refinery 
is converted into valuable by-products, perfumes, and fla- 
voring extracts, and mineral oils. The slag of the- iron fur- 
naces is utilized as ballast in railroad construction or con- 
verted into paving stones and slag brick. The low grade 
coal, heaped into " culmbanks " by the careless operations 
of the nineteenth century, is now being overhauled, 
screened, and marketed as chestnut, buckwheat, birdseye, 
and other fine grained varieties, which prove far bet ter than 
the coarser grades for the automatic stokers of the 
power plants. The by-products of the slaughterhouse 
fully cover the cost of converting the animals into 
The blood is transformed into albumen for bleaching, the 
offal into fertilizers, the hoofs into glue, the horn- into 
buttons, knife handles, etc., the bones become ivory and 
gelatine, the hair is made up into mattresses and felting, 
the various fats into butterine, glycerine, etc. Pepsin and 
other medicines are distilled from divers glands, and a nerve 
specific from the gray brain matter. Cotton seed, the 
waste of the gin, was cast into the gutters and left to rot 
and become a public nuisance in the ante-bellum days of the 
South. Yankee ingenuity has found a use for this refuse. 

Conscription 389 

By 1870 the crushed seed was used as a i by 1880 

as a cattle food, and by 1890 it was transformed into articles 

To-day no pan of the seed is wasted. The 

iedoffandma.iruj.u hulls are crushed 

and may yet be ct>: The 

id as fine as flour, the oil pressed out, and the take rriiuiiiun- --M NT i.ittlr Irrd C,,tt,,n-vri-.l 

refined, becomes cottolene, lubricating oil, and low grade 
:> the wastes of the forests are utilized, once 
they get to the mill. Sawdust, being elastic, absorpt 
and n MU on. 1 noting, makes the best kind of packing and 

Ix-ginning to be worked 
'. es and porou^ r iquttUs and bois du 

jK-an example. The cutting i.i: 
be used as timber are .tl viable 

ducts. Beech, hin h, and maple are converted 
and acetic acid and wood naphtha, the >tumps and 
branches of yellow pirn- into turjM-ntine, oak slabs into 
charcoal, the bark of oak and hemlock arest-i 
neries, while spruce, poplar, and wd furnish wood 

pulp for the paper mill. Kven pine needles may be distilled 
into camp! 

Preventive Legislation 

State and national legislatures have d<> to pre- 

hr iiiuu-cessary destru ral resources. 

Game laws, though enforced against persistent opposit 
a dosed season surBcit-nt in length t protect i 
and animals during the breeding season an 
the annual " kill" exceeding the annual increase. 1 
and tishinu' lii TUTS iin|>ose regulations on the methods of 
sl.iunhtrr. and usually '- D license fees 

;in<l tines large CIHM in the name wardens. In 

i Carolina a; leasing of game pre- 

serves to private persons and hunting clui.-* is an accepted 

niat ional 
96) Utv Initcd States, Great Brit- *. 

390 Industrial History of the I'nit.-.i .SV, 



Decision in 
Oregon Case, 

ain, and Ru ia. ; ance with which pelagic sealing 

is proscribed the year round within sixty miles of the Pribi- 
loff Islands, and throughout the Uehring Sea during the 
breeding season. <1 vessels only art- permitted to 

follow the seals into deep water, and in tin land kill tire- 
arms and explosives are forbidden. The < iators 

of this humane code are the Japanese sealers, wh 
unfortunately not bound by the treaty. 

Legislation to prevent the waste of human life ha 
veloped very slowly in the United* Mattachu 
took the lead in 1874, with a law imposing limitations upon 
the employment of children. The present labor rode of 
that progressive commonwealth forbids the employment 
of children under fourteen years, proscribes night 
for young persons and women, and enforces a fifty-right 
hour week in all factories and workshops. A battle 
has been fought over the legality of limiting the working 
day for women, on the ground that any interference with 
the terms of employment would deprive these la 
the freedom of contract. Tin- contention has been recently 
overruled by a decision of the Supreme Court in the < h 
case (1908). In upholding the provision fora nine-hour day 
for the woman wage earner, Justice Brewer gave the opinion 
that " the limitations which this statute places on her 
contractual powers, upon her right to agree with her em- 
ployer as to the time she shall labor, are not imposed solely 
for her benefit, but also largely for the benefit of all. . . . 
Since healthy mothers are essential to vigorous offspring, 
the physical well-being of women becomes an object of 
public interest and care, in order to preserve the health and 
r of the race." The Supreme Court of Illinois has re- 
cently sustained a nine-hour law for women on much the 
same grounds, and fully half the states of the Union have 
imposed similar restrictions upon the amount of physical 
exertion that may be required of female labon 

In employments where special risks are en 1 or 

heavy responsibilities imposed, restriction* on the working 
day for men have been enacted. Utah and seven other 


Rocl state* pretoribe an r day for 

federal law of 1907 determines the ooo- 

iis under \\lmh railway employees of the interstate 

roads ma responsible tasks. A nine-hour 

; iloyees, followed by a ten hours' interval 
est, together with safety devices ami uniform brak- 
and switching appliances, render the Bach Law a 

[tJBft.> of employers for accidents due to unguarded 
machinery and the negligence of fellow employees was recog- 
nized in the federal law of 1907, so far as interstate carriers 
aieconceofted 1 e\\ of the states have gooe so far, and -AC 
are still shamefully behind the I nglish and German re- 
injured workman gets no compensation 
v negligence can be proven, and the scale of 
damage- i-> n. >t determined \>\ the lau. 1 he op-ration ,,f 

.md Miit must Ixr brought 

< injured man or his famil\ to secure damages. 

vi ranee companies that 

three fourths - immity paid by the employer is usu- 

ally expended in litigation. Some of the grea ' '-re of 

labor, such as the .1 Railroad and t! 

States Steel Corporation, maintain a f- oluntary 

nue which goes far to make good the shortcomings 

A series of four coal-mine explosions occurring in De- 
cember, 1907, killed seven hundred men and shocked the 
happy-go-lucky American public to it of demand- 

that something be done. The federal govern r 
:i:h the I nited States Geological Survey, arranged for 
rescue stations at Pittsburg. Pa., and Urbana, III, where the 

life-saving appliances de- 
vised, and crews of n the Ke-t methods of 
A Bureau of Mines was establi>hed in 1010 for 
the puriMtsc* this work and t- vplo- 
shafting materials, and hoisting machinery, and a 

392 Industrial History of the 6V 



,'".' /.' jj( 

rescue station is to be placed in every large coal field in 

The battle against disease is being waged with ever in- 
creasing effectiveness. Health commit,, n -. city, state 

^d national, an- making scientific -tudy of local and 

Conditions. Ouarantine regulation-*. smitary re<|iiirc- 
ment>. and tenement house inspection arc being enforced 

pite of the protests of -elfish private Interests, The 

epidemic- that devastated our port- in time pa>l an- largely 
done away, and isolated outbrc. .uickly brought un- 

der control. Vaccination has bani>hed >mallpo\ : the 

;i against mosquitoes has eliminated yellow le\-er : t\ 
phoid will disappear with insistence <>n pure water and the 
destruction of the house fly, while California i> ridding 
herself of rats and ground-squirrels tin- carriers of bubonic 
plague. The warfare against conta^iou> diseases of more 
insidious type may not so soon be accomplished, but 
fighting tuberculosis by tenement house reform, the hook- 
worm disease by cleanliness, and the vii e di>ca>es which 
are responsible for a large proportion of the deft 
our asylums are coming to 1 ded afl intolerable. 

Variations in the death rate indicate the hygienic advance 
made in the course of the second half of the nineteeni ! 
tury. The numbers of deaths per thousand of population 
from 1804-1825 was 24.6; from 1826-1850, 25.7; from 
1851-1863, 28.3; from 1864-1875, 25.4; 1876-1888, 22.9; 
from 1880-1001, 21. Since 1890 the death rate in our 
principal cities has declined in New York from 25.4 to 
18.6; in Boston from 23.4 to 18.9; in Chicago from 
19.87 to 14.07. 

" The public welfare outweighs the riizht to private jzain, 
and no man may poison the people for hi> private profit." 
said President Roosevelt, in recommending to Co; 
legislation forbidding interstate traffic in adulterated or 
deteriorated foods. The Pure Food and Drug law is en- 
forced with difficulty because of the opposition of the manu- 
facturers concerned, but the new standards imposed will 
ultimately be insisted upon by state legislation and by 

Constrwtw* 393 

The proposition for a National 

Depan n A. mi l.y Congressman 

Owens in Mar .1 on the ground 

nun.- >al and state agendes should be brought 

the most advanced achi and that 

mimics v. hi, h are struggling against local influences 

eat The 

health of our people is no less important to national pres- 
ihan our standing arm uoney cost of ncg- 

<>re serious than war. It is estimated that the 
financial loss represented in preventable deaths amounts 
to $1,000,000,000 per year, and that the costs of pre 
able illness and the medical aid incidental thereto amounts 
I., an.-ther !,illi,.n dollar*. 


The Federal government has not confined its efforts to 
the guar >rutr and human, against reckless 

exploit at has organized and financed certain ui 

takings to uhiih was inadequate. The 

building of post roads and canals was urged upon Congress 
by Secretary Gallat in. hut proposed was too 

.ind nly recently have 
to realize the advantage of a comprehensive plan. 

A lar::- am.-unt "1 pie rmeal \\<>rk ha- hern l"iu- l.v the 
general g t in the way of improving rivers and har- 

lir-. Mi1i!"H> nt dullarsiii" pubttc IHOII0) h.i\ e !ren -jM-nt 

in building U-vecs aknv. reak- 

water itural harU>rs needed re&iforcement, dredg- 


A considerable \ * >rt i. m . >f t his expenditure has gone to waste 
because appropriations and ing skill were inade- 

t permanent results. M..rn>ver. the.-. 
raihv. - <1 public interest from n.i projects, 

and many .: the canals built by state aid and from the pro- 
ceeds al land grant- '.e n into diusc. Rail- 
.> superseded water traffic because it offers 

394 < : ' 

of (he United States 

\i wi. 





Tariff Hist, 



Acad. 31; 

greater speed and convenience, hut our magnificent IJ 
of inland waterways has still a large ]art to play in in- 
dustrial development. 1 he accumulation of freight : 
in the autumn months, when tin- crops art- to In- -hipped to 
market, taxes all the resources of the railway-, and the COO- 
sequent congestion often involve- the -hipper in heavy loss. 
Moreover, where no competing carrier is available, i: 
rates are likely to be excessive. Recourse to a water route 
^^ i* 5 possibilities in the way of low co>t tran-portation, 
would have more effect on freight tariffs than appeal- to 
the Interstate Commerce Commiion. 

The Inland Waterways Movement has many adh( < 
among business men, and the example of Kngland, France, 
and Germany, where a large part of bulky products travel 
by boat, is cited in evidence of our own -tupid neglect. We 
have 25,000 miles of navigated river and 2120 miles of 
operated canals ; but the mileage should be increased and 
the capacity of the- waterways doubled. Kxcept on the 
Great Lakes, where steamship lines are operated in connec- 
tion with the railways, there has been a notable decline- in 
the bulk and value of water-borne freight during the past 
thirty years. Many of the canals built at heavy cost in 
the second quarter of the nineteenth century have been 
abandoned, while rivers such as the Hudson and the Mi- 
sissippi, once the highways of commerce (1850-1880), have 
surrendered the bulk of traffic to their swift competitor. 
Our natural waterways must be cleared of debris and al- 
luvial deposits, canals that bear strategic relation to tr 
portation systems must be widened and deepened 1 
commodate modern craft, so that they may enter into 
effective competition with the railroad. A steamer with a 
capacity of 70,000 ton- i- the equivalent of one hundred 
freight train-, and can be manned and fired at the cost of 

Federal aid is invoked in behalf of a series of transporta- 

t ' un projects more or less feasible. The Panama Canal, 

now approaching completion, will promote -commerce be- 

ew Orleans and San Francisco, and do much toward 

Conservation 395 

abating transcontinental freight rate*. The canalisation 
cl the at a cost of $40,000,000 would give a 

cheap outUt for the cool, iron, and timber of tin \ppa- 
lachian states. The deep waterway Lakes t- 

tiicago drainage canal an<i the liiin... 
: urnish sufficient draft for sea-going vessels, 
so that the cattle, grain, and cotton grown in the Mississipp 
Valley can be shipped dim e deep water- 

way from Buffalo to New ric Canal 

and tin- Hud^m River, would tap the Great Lakes at an- 
t and furnish an outlet The cost 

of an all- water r< . i . cw Orleans, devel- 

oped to the capacity of ocean steamers, is estimated at 
$100,000,000, \ ' A IK- quickly 

made goocl in thr ri..n..mir-, ..|; 

therefore urge lUppfog fateveite concerned TheWaierw 

businessmen -th\Ne>t an- no le- that the ^ 

Federal government should undertake to n Co- 

lumliia ki\cr navigabh !y enlarging 

the locks at the Cascades and canalizing ih< ri\<r a' 
Dalles. Mon lies of waterway could 

thus be rendered available Ids and fruit 

orchards of the Colun r Basin. 

Achievements of the Department of Agriculture. In r.rcathoo* 
his last Congressional message, George Wa>! 
farnu-r president, recommended the establishment of a 
government department charged with the fur in- 

telligent agriculture. The proposition was debat 

was deferred till 1839, when 

Congress appropriated $1000 to be expended in the pur- 
chase of new varieties of seeds and plants under the d 

(the Patent Office. The appropriation was increased 
as the propaganda grew popular, but the Bureau 
culture was not organized as a distinct office until 1862. 
In this same year \ was made t<r the maintenance 

ricultural colleges from the proceeds of land gr.t 
and thus the movement for scientific agr obtained 

full recognition. The first agricultural e.\i>crimcnt stations 

396 Industrial II; ' the I'nitcd 

established by Federal appropriation in [SS;, and 
tin- Bureau of Agriculture wafl raised to tlu- status of a 
department with representation on tlu- Cabinet, two years 

lhe annual appropriation to ti, 

$16,000,000, while tin- Third Kndowmcnt Act (1907) pro- 
vides for a money grant of $50,000 a year to ( - a( h of the 
forty-six states and territories for tlu 
cultural train; 

I he functions of the Department <f Agriculture 
represented in a series of bureaus, e.g. the Weather Bu 
where an accurate climatic record is kept, and wh 
forecasts and weather signals are issued for the 1 cm-lit of 
shipping and agriculture : the Bureau of Animal Industry, 
which studies the diseases of horses, cattle, hogs, and sheep, 
and publishes information on scientific breeding, hygienic 
dairy farming, etc. One of its recent achievement- 
treatise on effective methods of combating 1< >co weed pois< >n- 
ing. The Bureau of Plant Industry conducts first -hand 
investigations and experiments in the adaptation of plant-, 
new and old, to the varied conditions of climate, soil, and 
humidity to be found in this country. Their latest triumph 
i> the discovery of a hardy alfalfa suited to the cattle ram -Jus 

;ntana and the Northwest, and a IVr-ian (lover that 
will flourish on the arid mesas of Ari/ona and New M< 
This achievement cost the discoverer a twelve-year hunt 

the sub-Arctic plains of Siberia and the arid steppes of 
Central Asia. The Bureau of Soils is making an extensive 
inquiry into agricultural conditions of every state- in the 
Union, and reports are issued, county by county, detailing 
the constituent properties of the soils represented, their 

r-holding capacity, facilities for drainage or irrigation, 
climatic influences, crop yields, etc. llu agricultural 
methods in use and tlu- changes deemed desirable- are dis- 
cussed in each instance. This bureau has carried on a 
series of experiments in Utah, California, and elsewher 
to the method of removing alkali from soils impregnated 
with this plant-killing salt The Bureau of Kntonv 

.raged in a campaign against destructive insect-, such 

Conservation 397 

as the gypsy moth, the rim beetle, tod the brown-tailed 

<* to forest growth, and cattle pests, 

as the gadfly ami the buffalo gnat The scientists 

i* branch of the service discovered the sins of the 

mosquito in spreading malaria and yellow fever, and the 

rr>|H.Ils,i, lilts ,,! thr h.-Usr ll\ 1-T iNph-.i-i I h liur.a'l 

tin- 1'urr Food and Drug law, conducts adulteration tests, 
and ytufvdiirH*^* drugs* 

lias been demonstrated that u:..l.-r suitable rotation 
of crops the drain on the chemical constituents of the soil 
may be minimized, and that thr iutr-ni- nitrogen- I0 s. * 

bearing plants clover, cow peas, and alfalfa may do H^M^ 

conserve thr iVrtilitv :idcr this SoO 

beneficent depart! a of corn and tobacco Fertffl| y* 

have been made to nV rrly regarded as 

unpr- experiments with sugar beets have proved 

that this crop can be successfully grown through a wide 
U-lt in the North ami \\V>l 

its long staple and hardy growth, has been adapted to the 
uplands of the Carolinas and Georgia ; spring wheat has 
been sown in the Dakotas and macaroni wheat in the 
semi-arid plains, adding vast areas to our wheat acreage ; 
the navel orange and irrigation have convened the deserts 
of southern ( land of orchards. 

The Depart i \uriculture and the agricultural col- 

leges have set about the systematic educa . < Ameri- (urc j v 

can farmer. Bulletins dealing \\itl problem that CH \m 

can present itself to the cotton planter, the ranchman, 
market gardener, or dairyman may be had free on apj ^ 

information is ^iven in simple, direct fashion, and 
nprovcments proposed are such as can be followed by 
a man of small capital and meager education. Model 
farms are operated in the several agricultural districts, 
in order that the various experiments and successes may 
serve as object lessons to a farming community. Farm- 

ites are held in every state in the Union The 
lance in 1907 was more than 1,500,000, and the 

398 Industrial li. '' lite C>. //<\r 

agricultural colleges were taxed to provide a >uffic ient num- 
ber of lecturers. Demonstration trains are soil through the 
remoter districts, the cars being fitted up with exhibits 
indicating tl rnt> in dairying, apii ult urc, 

.ill lire. tin- be>t result^ attained from the several varie-, alfalfa, corn. 

Fcrnow, The Forestry Service. I h- the 

first to suggest the depletion of our f< i and the 

for safeguarding the future timber Mipply. The 

report attracted the attention of public-Spirited men, an 
American Forestry Association was organi/ed, and .. 
tematic campaign undertaken. The Timher Culture Act 
of 1873 was intended to reforest the tr .-st of 

thi- one hundredth meridian. It provided that a man 
might >ecure title to a quarter section in the public lands 
by planting forty acres of timber and proving a tei 

h. The terms proved too difficult, and were later 
modified to ten acres in trees and an eight -year growth; 
but even so the actual results were >light. The plantations 
died for lack of moisture and adequate care, and many titles 
-ecured by fraudulent proof-. The act \va^ rej . 
)i, and in that same year the proident of the I'nited 
States was empowered to create forest reserves in the public 
domain. President Harrison proclaimed four such \< 
vat ions and President Cleveland thirteen, covering a total 
area of 17,500,000 acres, while President Roosevelt added 
150,000,000 acres to our forest domain. There ar< 
day one hundred and fifty national forests in the t'nited 
States, and the area so reserved amounts to 162,000,000 
acres. The public lands segregated for fore- 
cated almost wholly in the Cordilleran area, and lie in three- 
tiers running from north to south in line with the Continen- 
tal Divide, the Sierra and Cascade ranges, and 

the Coast range. Not all this land is forested; some 
of it is fitted to agriculture, a large proportion to pa-turage 
only, and some of it doubtless contain- important mineral 
deposit^. The- United States (,< -urvey i 

in classifying and delimiting the mineral lands, and the 



Constnatio* 399 

Forest Service is studying the surface resources with a view 
to designating their most effective use. 
The forest law of 1897 determined that the several rescr- 

ns should be administered with a view to utilizing 

irplus product of grass and timber while conserving 

the kjr-.-Ath The t.i-k u.i- intruded t., .1 Burr.m 

Department of Agriculture, and an 

annual appropriation of $15,000,000 is now assigned to its 

supj >restry Service is organized in six dis- 

, with headquarters at Missoula, Ogden, I)< 
Albuquerque, San Frwicisco, and Portland A forester 
is placed in charge of each district, and the field staff com- 
prises some 1500 men. The several functions performed 
)>> the forest service are (i) Protection against forest fires 
and timber thieves, the spot forest ranger. 

(2) Timber sales; disposal of 'lead, or inset 

under suitable conditions as to logging, saw- 

transportation.'- \ r nu-rch.i Sam 

deals by preference with the settlers of the immediate neigh- 
borhood, and ninety per cent of the sales are made in lots 
of less than $100 value. In the year 1008 the timber sales 
brought in a revenue of only $773,182, but 30,000 permits 

ree use were issued to sit . schools, 

churches, etc. The Initnl States government disposes of 
more lumber than any forest owner except the Czar of 
Russi Pasturage District! it able for grazing are 

leased to cattle and sheepmen under careful restrictions 
as to overstocking. The government ratio Is ten acres to a 
cow, and under thi- lilxral allowance the weight and 
quality of the animals is notably superior to those fed 
upon the open range, \\hile the forage growth is regaining 
its pristine luxuri. it-re, as everywhere, the settlers 

and home builders have the first choice. Fully 8,500,000 
animals horses, cattle, sheep, and goats were pas- 

: on the public range during 1008. and $962,829 was 
paid into the public treasury b\ -and 

4) Reforestation. Great care is taken in . 
mining the tret> that may IK- felled, and the conservation 

400 Industrial History of the United .SV. 

>ung growth is a matter of prime concern. Devast . 1 1 < 1 

areas are replant nl \\ith spi-cio adapted to special eondi- 

t ions of soil and climate, the Douglas fir for tin- \\ 'a>au h 

rllow pine i"<>r i he Sierras, the eucalyptus lor 

National the arid and frostless districts of Calif < >rnia. (5) Conserva- 
****&* tion of stream flow, one of the function- pn-eriU-d in the 
g ^ a ' 6 . >97, and a concern of the Fore which is 

of prime importance to the far \\V>t, where fuel is scarce 
and industry must rely upon water power. Special atten- 
tion is given to safeguarding the forest cover in the drainage 
basins where the mountain streams have their sour, 
order that tin- winter precipitation may be held over B 
into the summer as possible, thus guarding against destruc- 
tive floods and guaranteeing a constant flow. 

iot. Three fourths of our forests are in private hands, and 

these are usually the best stocked, containing four fifths 
1 the timber in the country. Scientific forestry must 
be practised by the farmer, the timber companies, tin- 
owners of great estates, if there is to be any fundamental 
change in our national habits. At present hardly one per 
cent of the private forest lands receive adequate care, and 
fire destroys more timber in the farmer's woodlots than on 
the public domain. The need of nationalizing certain 
timbered areas in the Eastern states is becoming evident. 
The proposed Appalachian forest reserve would enrich tin- 
tributary region by conserving an important timber supply, 
regulating stream flow, and preventing farther erosion of 
adjacent farm lands. 

Reclamation of Agricultural Land. The pressure of popu- 
lation on the food supply is becoming evident in tin t'nited 
States. Our exportation of agricultural products is declin- 
the prices of beef, cereals, hides, wool, etc. are rising. 
and they are not likely to fall to former level ! i >n>b- 
able that wheat at one dollar per bushel is a permanent 
factor in our national economy. Values are mounting 
from year to year. re fa-t reaching the limit of our 

cultivable area, while the demand for farms j^ ( -nli 
. by the incoming of land-hungry peasants from Kir 

Constriction 401 

lean fanners are beginning to migrate to the Cana- 
: thwest, where unexploited wheat areas await cul- 

/o; and again in r, - . and e mounted to 

75,000 in 1909. The increased valu< \ lands is doe 

in pan to scit .tge, resui r crops, and to 

apital invested in improvements, buildings, fences, 
roads, etc. The average rise in capitalization between 
1890 and 1900 is estimated a between 

1900 and 1905 at t : eatest augmenta- 

tion >: has taken . d Southwwt, 

but the older sections 01 >n have < d a con- 

siderable rise, South Central, 40.2 North Cen- 

tral, 35.3, tlantic, 36, North \ 14.5 percent. 

The agricultural the public domain is prac- 

tically exhausted ; some 400,000,000 acres remain in pos- 
Sessio government, but iiree fourth^ is fit 

for grazin. I he >u\ >j >ly >f arable land is being rapidly 

appropria een sold and taken up by home- 

steaders for the past decade at the r., acres 

per year. As we approach the limit of our national in- Humphrey. 
be possessed by a land mania. The jjjj^jjj 
opening -eservation or an our Land 

is attended by crowd eseekers cage *? 

chance for a quarter section on the old. ea>\ terms. Pro- 
posals for the extension of the cultivable area by the irriga- 

f arid lands and the drainage of swamp lands re;t 
command att 

Irrigation of Arid Lands. Professor Shaler called the Ptwcfl. 
Cordilleran area "the curse of the conti. rou^hmit Lutt 

greater part of this mountain. >u> rej;i..n. the 
equate for agriculture rest growth, excq 

th- west slope of the ranges, where the warm winds from 
thf I 1 ... ^ture as they rise to cooler 

total area is 758,000.000 acres irger 

- rock or shale or sand, and quite unfit for ti 
but then- rr.aybe 6o,ooo,ooo acres of fairly level and fertile 
land \\hiih could be rendered cultivable by irrii;. 

4O2 Industrial History of the United States 

Where soil and climate arc suited, and a water supply 
available, these arid lands air highly product!-. 
Census. /<xx. Irrigation has been practised for ccnturio by the Pueblo 

\i SOI-SOQ. I n( ii ans a i, mi r tin- Rio (irande and (iila river-. each com- 
munity building the ditch with which to water the common 
cornfields, while the irrigated orchards and vii 
the : -in miions in southern California p: 

Hr,.-.:.rh. what might be done with larger resource^ Tin 
Irrigation cesses of the Mormons in I'tah have been r< in a 

hundred different settlements. until in K>OO the tommuni- 

tics of this sect had more than 6,000,000 acres under ir- 
c,, m . I. kkm, Tin- first attempt of the Federal government to 

85-91; III. deal with the problem of the arid region was the Desert 
Land Act of 1877, by which tracts of 640 acr- ffered 

' at $1.2 5 per acre, on condition that irrigation IK- attempted. 
The only men to take advantage of the law were cattle 
and sheep ranchers who seized the opportunity to get per- 
manent title to their headquarters, and speculative i 
tion companies which put in inadequate waterworks 
the land without water right, or charged a monopoly price 
for the water supplied. Land title and water right 
were rendered inseparable in the Carey Act of 1894. 
National This wise law provides that any one of the arid 
onservation mav appropriate public land to the amount of one 
million acres in suitable tracts and authori/e the 
truction of irrigation works thereon by private companies. 
Mcade, The engineering plans for each enterprise mu-t be approved 

by the state land commission, as well as the charge to be 
c n h Stl U Uon *' made for water rights. The state sells the land to settlers 
at fifty cents an acre, and full title may be acquired after 
thirty days* residence. The water right charge varie- 
the cost of construction, from $30 to $40 per acre, and may- 
be paid in ten annual installmei -.ership in the 

reservoirs, canals, dan held by the company until 

these payments are complete, and then paajfll to the water 
users' associatiot states, Wyoming. Idaho. Men- 

tana, Utah, Colorado, Arizona, and California, have already- 
taken advantage of the Carey Act, and New Mexico and 

i .I- i n aa*4 * m r> . E, 

'on 403 

Texas have both applied for a land grant in order to de- 
velop their irrigation fXMsibilities. Thus far only fertile 
lands and easily irrigated have be* up, and the 

projects now u successful. The 

Carey Act does not, however, provide fur interstate pro- 
jects, nor does it lead to any large and comprehensive plan 
of consen voter resources of the vast region con- 

cerned. Again, the responsibility of mainta irri- 

gating plant after the o company has sur- 

rendered t >lves upon the fanners, who, while they 

can readily finance ordinary repairs, would be ruined by a 

In the Reclamation Act of 1002 the Federal government N*B. 
assumed the task < racts of arid land inifukm. 

wise provided for, and the revenue from sales of public 
lands in the United States, amounting to about $10,000,000 
per year, was devoted to this purp-e. The initial expenses 
are met from this fund, but the cost of cc.i :i in each 

case is assessed on the lands to which u hed, 

and must be met ultimately by the tet 

years of cultivation. The returns are used for the prosecu- 
tion of new projects \\ i t hi n the same stat e revisions 
of the Homestead Act apply to the lands irrigated by the 
government. A cit Ues may acquire Bfen. 
a title to rex the area 
being dct .iture of the soih on con-: 

ars* residence and the i If the area un- 

der cultivation. The wat< harge varies from $20 

to $30 per acre, according to cost of construction. The 
water MI; able from the land, and the govern- 

t allowance of three acre-feet per year, equivalent to 
thirt hcs of rainfall. op suited 

mate. The execution of irrigation projects under 
law was intrusted to the Reclamation Sen-ice, a bureau 
nized under the Depui I KiriiiR 

the eiirht years of projects have 

been at a cost of $70,000,000, and I.Q 10,000 

acres have been brought under cultivation, fully half of this 
area under direct irrigation. 

404 Industrial History of the United States 

Beneficent as the Reclamation Act has proved, certain 
difficulties have become apparent in it- operation. I 'bi- 
annual revenue derived from public land silr- i> inadequate 

to all the projects set on foot, the work has l>een delayed 
unduly, and some of the sett UTS who filed in good faith for 
the five-year residence term are still waiting for water, 
because money is lacking to complete- the canak I lx 
la mation Service worked out a plan for meeting thi- -it na- 
tion, e.g. the engineer in charge WBB authori/ed t 
with the homesteaders to build the canals, paying for t heir- 
labor in certificates of indebtedness, and Seer- rtield 
agreed to receive this " water scrip " in payment for tin- 
annual watef charge as it fell due. The plan seemed j uni- 
fied by its economies. Labor that was running to 
was brought to bear where it was m>t needed, and the 
farmers were enabled to forestall their obligations to tin- 
government in their one available asset. This method of 
canal construction was put in operation on six different 
projects, and some $300,000 had been issued in water M rip 
when the legality of the procedure was called in jiu>tion. 
and Attorney General Wickersham ruled that the 
was illegal, since not specifically authorized by tin 
lamation Act. Congress has since met the financial diffi- 
culties involved by voting an issue of $20,000,000 for the 
completion of the work already undertaken and in immedi- 
ate prospect, this issue to be in the form of certificates of 
indebtedness guaranteed by future revenue from land 

The sum total of irrigated lands in the United Si 
to-day is 7,500,000 acres in the arid region, 275,000 in the 
semi-arid, and 3000 in the humid section east of the one 
hundredth meridian. 

National Drainage of Swamp Lands. Excess of water i< a pmb- 

Conervation j em on jy 1^5 difficult to the agriculturi-t than scanty rain- 
36*375. ' fall- T^ lands unfitted for agriculture by flooded con- 
ditions, more or less permanent, amount to 75,000,000 
acres, e.g. the " Dismals" of Virginia, the bayous of the 
Carolinas, Florida, and the Gulf coast, the deltas of the 
Mississippi River, the swamp areas of the great interior 

lUUCATIOM Of \\!.I. 


valley of California. By an act of 1850, the swamp lands 
- i State* government were made over 
lay, on condition that the funds 
their sale be used to reclaim them. Under 
law 65,000,000 acres have been disposed of, to private 
individu.'. main, although canals, railroads, schools, 

and other pu as have to some degree shared 

in the i.t :.. Drainage operations have been carried on 
in rather haphazard fashion by drainage commissions, 
levee boards, and private companies, and the results are far 
satisfactory. The cost of draining arable land by 
ics may be anywhere from $15 to $30 an acre, with an 
annual maintenance charge of from $i to $3. Levees 
cost indei and pumping ma. nec- 

essary, adds an expert erflowed lands are 

usually rich in nitrogen and well repay the cost of rcclama- 

>peal has been made t deral go 

1.. aid Certain laifC drainage pn-jnt-. -mh U .ire required 
in northern Minnesota, in the lands overflowed by the 
Sacramento and San Joaquin river-, in the Yazoo delta, 
and along the Tallahatchie The Inland Waterways 
1908) recommended that the government 
undertake the reclamation of swamp lands on the ground 
that ild highly fertile areas be recovered to 

tulti malaria- breeding swamps be rendered 

he navigability of the rivers concerned 
w< . u Ul be greatly enhanced. - >jects should be under- 

taken on a scale commensurate with Federal -c in 

order that unity of plan and permanent results may be at- 
tained. A bill is now before Congress (introduced by 
>r Mint rnia) proposing that the proceeds of 
puMii land >ale> in th< d states be devoted to the 

reclamation of these drowned areas, the land to be made 
mesteadcrs in small tracts, and the cost of drain- 
age to constitute a tir-t lit land and to be repaid 

after the precedent of the 

Dry Farming. - Ir: tied to districts 

406 Industrial History of the Unilnl 

:- available and where the topography i 
the lands lie below the river < ir from which 

the -upply i^ drawn. Pumping to higher levels is a \ 
Cal possibility, but is too expensive for any but the mo-t 
productive regions. There is a vast extent of fertile coun- 
try lying west of the one hundredth meridan where the-e 
conditions can rarely be found. Tin- (ire at Plain- -weal 
ern Nebraska and Kansas, eastern Colorado and northern 
Texas were long the despair of agriculturists. The rain- 
fall is scant, varying from ten to twenty im he-, the ri\ < 
shallow and inconstant, and the land is hilly and broken, 
yet the soil, a deep alluvial loam, would yield h< 
if sufficient moisture were available. This region ha 
brought under cultivation by a special typeof agricult 
dry farming, a process calculated t< 
itself whatever precipitation occurs. The field is plowed 
in the autumn, just before the rainy season, to a depth of 
twelve or fourteen inches, in order to allow tin- water to 
through to the subsoil. In the spring when the -uriace 
hardens, it is plowed and harrowed into a line mulch, 
forming a dust blanket which effectually prevents evapora- 
tion. The seed is drilled in deep, and a smaller amount per 
acre is used in order to economize water and nitrogen and 
e each plant adequate nutrition. In all but the best 
lands, a summer fallow should be allowed every other year. 
The method was used first on the wheat ranches of Califor- 
Scofield, nia some sixty years ago, and it is now successfully prac- 
Farini in ^^ m ^ e Columbia River Basin and on the western 
t ht Graft slopes of the ranges that intersect the desert regions of Utah 
and Nevada. It is admirably adapted to cereals and to 
certain forage crops, such as clover and cowpeas, and fruit 
orchards may be successfully developed if water can Im- 
plied in abundance for the first three years of growth. I > ry 
farming should be properly regarded as supplementary to ir- 
' ion, a means of bringing under tillage such porti- < 

irm as cannot be provided with water. The introduc- 
tion of drought-resisting plants and trees durum wheat, 
kaffir com, and Persian clover will doubtless ex! 

Ctmsenixtiom .; ; 

the area of its usefulness. The Department of Agriculture 
has established an office of Dry Land Agriculture which is 

en^a^eo! in makin;.' i -\\ >-nn.rnt > .1 - ! thr t<M nu-th"i- : 


strut practicability. It seems to be proven that a 

larger than the .jiurtcr section of the homestead J 

is essential t<> the best success. The Mondcll Act 
H> increases the homesteader's claim to 320 acres, in 
case of filings on non-timbered, non mineral, non-irrigable 
< arid states, and requires no residence term, but 
i-ncc of successful cultivation instead. 

The Conservation Movement 

The inception of the movement for conservation of our 
national resources should be credited to GifTord Pinchot, _ 
late ( i ! 

duced the National Academy of Science to appoint a com- 
niittee (1896) to investigate and report on the forest ; 

be count r :..i I . !i 

efficient head of the Reclamation Service, suggest* 
President Roosevelt the appoiir the Puhlic Lands 

mission (1003). "huh made a thoroughgoing inquiry 
into the use and abuse of our national < 
as regards grazing and agriculture. Tl m led to 

the appoint n he Inland Waterways Commission, 

which suggested the Conference of Governor 

rence was convened by President Roosevelt at the 
White House in May, 1908, and every state and territory 
in ti was represented by one or more delegates. 

immediate consequence was the appointment of forty 
state conservation commission* for local work, and a 

>nal Conservation Commission to promote the general 
interest. The great achievement of the Federal commis- 
sion has been the three-volume report submitted to Con- 
gress in January, 1009. In the compilation of this report, 
the several Federal bureaus were requisitioned, and the 

408 Industrial History of the United St<i 

experts of the United States Geological Survey, the 
estry Service, and the Agricultural Department, contrib- 

uted their accumulated stores of information. The- roult 

was the first scientific inventory of tlu- natural 
of the United States ever made, and tin- interest ii.. 
hibit of wastes and latent possibilities forms tin- groundwork 
for progressive legation alonjr sound and rational lines. 
In his special message trans mitt inj the report to Congress, 
President Roosevelt said : 

\\e know that our population is n<\v adding about 
fifth to its numbers in ten year-, and that by the middle 
of the present century perhaps one hundred and fifty mil- 
lion Americans, and by its end very many millions more, 
must be fed and clothed from the products of our -oil. 
With the steady growth in population and the- still more 
rapid increase in consumption, our people will hen 
make greater and not less demands per capita upon all the 
natural resources for their livelihood, comfort, and 
venience. It is hi.uh time to realize that our responsibility 
to the coming millions is like that of parents to their chil- 
dren, and.that in wasting our resources we are \vn nging our 
National The recommendations of the Commission for the land 

SlTs*? 011 P 011 ^ f the f uture foUow : ~ 

letin 4, p. 12. l - " Every part of the public lands should be dev >t ed t < > 

the use which will best subserve the interests of the whole- 

2. " The classification of all public lands is necessary 
for their administration in the interests of the people-. 

3. "The timber, the minerals, and the surface of the 
public lands should be disposed of separately. 

4. "Public lands more valuable for conserving water 
supply, timber, and natural beauties or wonders than for 
agriculture should be withheld from all ... except min- 
eral entry. 

5 " Title to the surface of the remaining non-mineral 
public lands should be granted only to actual home m 
6. " Pending the transfer of title to the remaining public 

Conservation 409 

lands they should be administered by the Government 
and their use should be allowed in a way to prevent or con- 

trul waste and IIJ..II..JH,;\ 

Our publu land laws as a whole do not subserve the best 
<-its of the nation, and they should be modified so far 
as may be required to bring them into conformity with the 
foregoing outline of policy. The Homestead La 
proved so beneficial to the settlers of the Middle West, is 
inapplicable to the arid states, because here irrigation is a 
7*0 mm and this cannot be achieved without capital 
Reclamation Service wisely recommends that n< > 
rtakc to file on a government project without at least 
$2000 with v. -i.u.r the necessary improvements. 

Timber for furl and for building purposes are costly items, 
while food and family supplies cannot be so readily pro- 
vided as on thr pioneer farms of the Mississippi \ f alley. 
The law has ceased to be advantageous to home seekers, 
and is being utilized by timber companies and mining syn- 
dicates to secure title to large tracts of forest and mineral 
land. The process is easy ; homestead entries are made by 
the employees of the company and other dummy homestead- 
ers, fraudulent proof of residence is brought, and the title- 
when secured is made - he company for some small 
consideration. Under tin- mineral land laws valuable depos- 
its are being taken up by private j>er>ons at men .1 
rates; gold. M!VIT. opj>er. lead and zinc at the " double , 
minimum" of $2.50 an acre >al lands may be had at DLjBi 
from $10 to $20 an acre according to distance from market S7> 

ransportation faculties. On these very liberal terms 
the mineral resources of the country are being rap 
monopolized. Se\ ft in the 

Lake Su|>crior and south Appalachian fields belongs to the 
United States Steel Corporation. The coal lands of the 
publi. .ico, and Alaska, are being 

bought up by the American Smelting Comp.. fiance ,& Forotry 

r hearcatl '* held by any One Senrk*. 

rock, so 
indis|>ensable to the future of agriculture in this coun 

410 Industrial History of the United States 

b not as yet covered by tin- law. Tin- Eastern deposits have 

passed from the jurisdiction of the c rntral govmnncnt. but 
there an- large deposits on tin- public domain, in I'tah, 

nit urc demand will be \ 

In the- granting of ilaim> to these phosphate lands the sur- 
face title should be separated from the mining right i,sof hat 
arable areas can be homesteaded, while the mining rights 
should be leased, not sold, with stipulations as to royalty 
payment, conservation of waste, and non-exportation of 
tin- product. The- maximum price of coal lands should 
be raised in proportion to the royalty that might be de- 
med if they were private property. 

The protection of the right- of the people in the public 
domain i- far more important than the immediateexploita- 
tion of its wealth. I } ri\ ate enterprise should beencour, 
not so private monopoly. Public owner-hip and operat i< m 
of coal lands, water power, etc., find few advocates; but 
public control and legislative limits on private- enterprise 
are essential to the future well-being of our nation. In the 
message above quoted, President Roosevelt said truly, " If 
we allow great industrial organizations to exercise unregu- 
lated control of the means of production and the necessa- 
ries of life, we deprive the Americans of to-day and of the 
future of industrial liberty, a right no les- precious and 
vital than political freedom. Industrial liberty was a fruit 
of political liberty, and in turn has become one of it- chief 
supports ; and exactly as we stand for political demo- 
so we must stand for industrial democracy." 

National The Conservation of Water Power. In view of the 

Conservation early exhaustion of the coal measures, the utilization of the 
141^179' motor power latent in our rivers becomes a problem of the 
utmost importance. The direct use of water power through 
the medium of the water wh el has been practised for a 
thousand years, but the transformation of thi- gravity pro- 
peller into el> y i- the achievement of thepre>- 
-eneration. By turbine wheel-, dynamos, and trans- 
formers, the force of falling water is converted into energy 
\\h:< e transmitted along a cable to distant mines, 

Conservation 4 1 1 

factories, transportation ai :ig systems, so tkr 

mote and inaccessible i ents are made to serve 

popu es. The present limit of distance is one bun- 

o>, l>ut ibis will soon be extended 
Niagara Falls to-day furnishes light and power to Buffalo, 
Rochester, and Toronto. In the near future this m 
force may be carried n - d miles, as far as Nor 

Va., and a general 

power has been carried to its highest development on the 
Pacific coast The torrential rivers of the Sierras and the 
Cascades furnish one third the water power of if 

I, and thi- latent source of industrial energy is being 

:y best advantage. One miner's in 

water is made to generate energy equivalent to three and a 

third units of horse j* ost of developing 

water p< per cent less than the 

cost by steam, this new industrial factor augurs much for 


mt requires little labor, but expen- 
sive machinery and a great capital investment, 
is not an enterprise therefore with which settlers as indi- 
.U or in association can do much, but it offers an 
corporate eaj MI V: The tendency toward 
ownership in water power plants has 
been marked in the past decade. The r nade 

by the Depar amerce and Labor in January, 

1009, indicated th. hree per cent of the developed 

power (1,827,000 11 I .000 H.P.i is owned 

or controlled by t ..d syndicates. When one 

realizes that within one hundred years all the wheels 
and engines of the 1'nited States must be run by electric 
motors, and that even now the industries of the Cordilleran 
region are wholly dependent u|x>n this source of power, the 
disposition of hydraulic energy to 
te hands \sitl i becomes evident Weare 

now awaking to the fact that power sites should be 
leased, not s en away, and that the privilege of 

using this natural source of wealth should be granted on 

412 Industrial History of the United States 

terms that \\ill convene tin- rights of the public to adequate 
service at a reasonable charge. Tin- Federal government 
has supervision of interstate waterways, navigable rivers, 
and streams that llo\v through tin- national forests or the 
public domain, and may therefore determine the conditions 
under which torrents and cataracts occurring within this 

President^ jurisdiction may be used. The law of 1000 voted in Con 
gress the disposition of all such water powers, and that 

u i; ,' r ' ^ these grants might be made conditional on tin- meet; 

Power in the certain specifications, as in the case of other fraud) 

would seem to be a reasonable inference. Acting on this 
supposition, President Roosevelt vetoed bills conceding 
rights to construct dams and develop power on the Rainy 
River, Minn., and the James River, Mo., stating hi 
viction that every license should be granted for a limited 
term, fifty years at the utmost, that each grant should Ir- 
revocable if the intention to utilize possibilities to the full 
was not made sure, and that fees be imposed, adjusted to 
the earning capacity of the plant. 

Conservation Challenged. President Roosevelt's ad- 
ministration was pledged heart and soul to the conserva- 
tion of national resources. The more literal interpretation 
of the laws under which the Forestry Service, the Rec- 
lamation Service, and the Land Office were operating, 
has given rise to widespread suspicion of lukewarmn* 
this cause on the part of President Taft's appointees. The 
cancelling of the water scrip agreement has brought dis- 
tress upon the homesteaders on the government irrigation 
projects, the appropriation made for the rangers' schools 
has been withdrawn, the practice of setting aside nu 
stations in the national forests has been denounced, the 
James River bill has again been brought forward in t he- 
Senate, the good faith of the Secretary of the Interior in 
clear-listing certain coal claims in Alaska, suspected of being 
fraudulent, has been questioned, and the President's right 
to withdraw lands from homestead entry in the public in- 
terest has been challenged. The pros and cons have 
fully brought out in a Congressional investigation of the 

Conservation 413 

Department . >: the Interior and the Bureau of Forestry. 
y be regarded as inconclusive, because of the 
fumlamental difference of opinion between the men who 
. .ill...-.; us; the greatest possible freedom to in<li- 
rrpriM- .ui.l those who hold that private interests 
IK- regulated where the public well-being needs to be 
guarded. Congress has gone far toward c< .' the 

government to the policy of control by authorizing the 
President to withdraw public lands from private use, tem- 
porarily or permanently, whem-w-r the conservation of 
forests or grazing lands, water power, irrigation possibili- 
ties, or scenic beauty is deemed to be at stake. In accord- 
ance with this law, President Taft has withdrawn (1910) 
from mineral entry 71,500,000 acres of public lands sup- 
posed to contain coal, phosphate, or petroleum, or to fur- 
nish valuable water power sites. All thi> l.m.l is open to 
agricultural entry. l>ut the terms on which mining and 
development rights will be conceded are yet to be deter- 
mined by Congress. 

TO TXAcms 

The industrial history of the United States U a lane and complex 
1 can hardly be rendered both interesting and instructive 
the limitations of a textbook. The author cannot do more 
than furnish a skeleton which the instructor must clothe and vitalbe 
'he means best suited to his students. Their caliber will de- 
termine the character of lectures and supplementary 

high * h. > .il history and familiar 

should be made the point of departure for the study of national 
I he number of publications treating local history 
from the economic standpoint is fortunately on the increase. Such 
material may be culled from the numerous town and state histories, 
but a more philosophical if more general treatment may be had in 
works as WEEDCN. Economic and Social History of New Eng- 
land; BOLUS, History of Pennsylvania; BIUCE, Economic History 
(utory of South Carolina; RAPE*, History 
nh Carolina; I Economic History of the South On 

preparatiot . Economic History of the Far West (in prepa- 

ration !i*tory of California; MEANY, Slate of Wash- 

ington; ScHAfEt, Pacific Northwest. The story of a postroad, a 
canal, or a railroad may often serve to illustrate transportation 
problems, and valuable material b afforded by HUKLBUKT'S Historic 
Highway Series and by such monographs as WARD'S Chesapeake 
and Ohio Canal; BUTTON'S Wabash Trade Route. The history of 
water transportation b graphically depicted b Occ, The Opening of 
lissbsippi; MATTHEWS, Remaking of the Mississippi; CHAN- 
KING, The Great Lakes; BIBBIVS. The Chesapeake. The new 
way Series published by Putnam's sets forth the historical and 
economic significance of our principal rivers, e.g. the Connecticut, the 
Hudson, the St. Lawreno ^ara. the Ohio, the Columbia, 

the Colorado. The evolution of a great railway system maybe 
deduced from special treatises such as WILSON'S Pennsylvania 
Railroad; S* ALLEY'S Northern Pacific; SPEARMAN'S Strategy of 
Great Railroads. 

If the immadiatr environment does not offer suggestive material, 

the thread of personal interest may be followed in the disnission of 

nomic achievements of such old-time entrepreneurs as Governor 

\Vint hr..p of Mass*. .. r Spotswood of Virginia, such 

cm as Penn and Ogfethorpe, such statesmen as Franklin, 


416 / i of the United States 

Wmshi tTcrson, Gallatin, Cl.i Lincoln. R.x, 

such modern captains of industry as M Cormii k. M I. 

.1, Edison, Harriman, Ro, I J. Hill. J. I'. Morgan. 

Moreover, the indict rial novel is not to l>c despised, provided it 
Is baaed on a first-hand knowledge of the condition* deputed. The 
following are suggested. 

BISLAND, A Candle of Understanding (a sugar plantation in 
Louisiana) ; CHURCHILL, The Crossing (pioneer day 
FOOTE, Cocur d'Alene (the silver miner* of Idaho); GLASGOW 
Deliverance (a tobacco plantation in 
Tom (the anthracite coal miners) ; I 

lish buccaneers on the Spanish i he Octopu 

wheat ranches of California ; I Pit (the wheat market of 
Chicago); PARKES, The Magnetic N 
RICHARDSON, The Long Day (women wage-eanu rs in N 
SINCLAIR, The Jungle (beef packers of Chicago); STIMSON, I I . 
King Noanet (indentured servants in colonial Virginia and 
lands in Massachusetts); On Many Seas (the Am 

sailor's experiences) ; V. \ Prue to the Hardy (wheat farms of 

Minnesota); WRIGHT, Where Copper was King (Vopper mini- 
Lake Superior); COOLIDGE, Hidden Water (cattle and sheep \\ 
Arizona); GARLAND, The Forest Ranger; The Lion's P 

Biography, autobiography, and journals of travel may be 
more illuminating, e.g. BRUCE, H. A., Daniel Hoone and the Wilder- 
ness Road; DANA, Two Years before the Mast; DuBois, Souls of 
Black Folk; WASHINGTON, Up from Slavery; WMOI.M\\'S Journal; 
FRANKLIN'S Autobiography; SIII-:RW\\, Recollections of 1 
Years; VAN VORST, The Woman Who Toils; T.U.HOT, Samuel 
Chapman Armstrong; JAMES FLINT, Letters from America; HIK- 
BECK, Journey in America; TIMOTHY FLINT, Recollections of the 
Last Ten Years; MARTTNEAU, Society in America; CHKVAI.II.R, 
United States; BOWLES, Across the Continent. 

Local interest may render advisable the study of a special indus- 
try, agricultural, manufacturing, or commercial, and for thi 
excellent treatises are available, e.g. : 

HAMMOND, The Cotton Culture and the Cotton Trad. ; H v 
Cyclopedia of Agriculture (for corn, rice, cattle, sheep, etc.) ; 1 > 

K, Book of Wheat; EDGAR, Story of a Grain of \\ ' 
SON, Romance of the Reaper; DEFEBAUGH. History of the Lumber 
Industry; BRUNCKEN, North American Forests and Forestry; 
McLAURiN, Sketches in Crude Oil; MoNTv.n:. Ri*- and Pr 
of the Standard Oil Company; TARHI EX, HUt.ry f th.- Standard 
Oil Company; ory of the Mim ; Wi i D. Co| 

of the \\..rld; SWANK, History of the Manufacture of Iron in all 
Ages ; VIRTUE, Minnesota Iron Ranges ; CASSON, Romance of w 


BUDGE, Carnegie Sled Company; Curort, Coil and the Cod 
Minn; NICOLU*. Story ol American Comb; ROBEBTS. The Anthra- 
cite Coal Industry ; HMIMIIN . The Bed Bonanza ; HOUGH, Story of 
the Cowboy ; ADAMS, Log of a Cowboy . r, The American 

Merchant Mar. .-at Salt Lake Trail; The Old 

Santa F* Trail ; LA ft, The Story of the Trapper ; BAGMALL, Tex- 

UtfJuttries ol th. 

America; Norm, A Century of Wool Manufacture; WEIGHT, 
Wool Growing and the Tariff; THOMPSON, From the Cotton Field to 
the Cotton Mill; STUB**, The Sugar Industry; TAUSSIG, The Iron 

To r i?Hty studeotSt ttrflUffHiV pfflbteftf may be assigned for in* 
dividual reading and report. The following topics art suggested for 

(i) Advantages of North America as a habitat for European < 
sation. SHALCR, Nature and Man in America, <h M. Ml. 

(a) The peculiar physiographic advantages of the region between 
the Appalachian Range and the Sea. SIMPLE, American History 
and its Geographic Conditions, < 1 III 

(j) To what extent did the various Indian tribes utilize the 
natural resources of the country? FARRAND, Basis of American 
History, < 

(4) Account for the failure of the French and Dutch colonies 

rth America. JOHN FISKE, Dutch and Quaker Colonies, 

Vol. I; New France and New England; THWATTKS, France in 

(5) Account for the faflure of Spain's colonies along the Gulf 
Coast and in California. SMITH. Wealth of Nations. Bk. IV, Ch Ml. 

s|in in North America, Ch. XIII \I\ 

(6) Was the success of the English colonies due to advantages 
nate. soil, mineral resources, commercial opportunities, or to 

the superior industrial efficiency of the race? SHALES, Nature and 
Man in America M 

(7) The powers and functions of the Dutch West India Company. 
itc the part it played in the peopling of North America. 

QBGOOD. American Colonies, Vol II u V. 


(0 What use did the government of James I expect to make of 

England's posstnioni hi America? Compare with the attitude of 

Lord Salisbury's government toward South Africa. What better 

motives were proposed? Oscooo. Vol. I II; HAKLUYT, 


41 8 Industrial History of tltc i';//<V,/ States 

Western Planting; WHITE, The Planter's Plea; BACON'S Essay on 


(2) Compare the powers and fun :m<l l'l\ - 
mouth Companies with those of the East India > \\ h\ did 

rmcr fail to develop profitable trade? Oscoon. V..1. I 
Ch. V. I! .din- Companies, pp. 55-72; ( 

pean Background, Ch. VIII 

(3) Why did the associa (venturers succeed in establish- 
ing permanent colonies ? TYLER, England in America, Ch. XI XII, 


(4) Was the communism of the initial stages of a colonial 
prise based on theory or on practical necessity? ADA 
Communities; BRADFORD, Plimouth Plantations, pp. 56-58, 162-168, 

(5) Indicate the feudal features of the proprietary grant. What 
were its advantages to the proprietor? to the colonist ? Why did 
this form of colonial undertaking fail? OSGOOD, Vol. II. I't. III. 
Ch. II. 

(6) The several forms of land tenure prevailing in the colonial 
period, communal, feudal, and fee simple. What were- the : 
social and economic-, in acquisition by "head right"? by "cabin 
right"? Compare the acquisition of title under the Virgin: 

of 1705 with the right of homestead entry. I: <>ry of 

Virginia, Ch. XII; BRUCE, Economic History of Virginia, Vol. I, 
Ch. VIII; OSGOOD, Vol. I, Pt. II, Ch. XI; Vol. II. I't III. Ch II 

(7) Was the Cavalier, the Roundhead, or the Levcler tin 
successful type of colonist? BRADFORD, pp. in, 121, 137-161, 178- 
184, 283-292. 

(8) What were the sources of labor supply open to the colonial 
entrepreneur? Compare the economic status of the indentured 
servant with that of the slave, the free immigrant. Kin 

from America, pp. 63-89; KAI.M. Travels into North America. Vol. I, 
pp. 387-397; WELD, Travels, Vol. I, pp. 120-124; BRIVI.. Vol. I, 
Ch. IX, X; GEISER, Redemptioners and Indenture-! 

(9) How far was the prevalence of slave labor in the South due 
to climate, staple crops, aristocratic form of land tenure ? H 
Land Tenure in Georgia, pp. 11-29; MICHAUX, Travels, pp. 290-306. 


(1) Compare the opportunities of a farmer in eighteenth-century 
America with those he had in England. American Husbandry, 
Vol. I, pp. 61-73, 86-93, "5-123, 184-215, 249-255, 327-329, 429- 
433J Vol. II, pp. 14-20. 

(2) Compare the opportunities offered by the several col 
(a) to the emancipated servant; (6) to the man of capital. I ' 
English Colonie^ p. 381-395; Vol. Ill, pp. 1-52; Vol. IV. 

: Teachers 419 

10-388; Vol. V, pp. 153-165, 3-347; FiAJnttw's Works, 

P- J9 40g, WlimUMTBAM, United S 111. 

pp. 2ft> 

Sodal ami Economic History, Vol. I, pp. 1 70-174, 24*-5*. 365-368, 
4J7-43*; Vol. II, pp. 466-472, 5*5-57*, 607-617, 614-635. 

(3) Indicate the sources tad dist. 

English colonies during the eighteenth century. GKEEXC, Pro- 
vincial America MMOs, Races and Immigrant* in 
America, ( 

(4) Nature of legislation concerning immigration. Piom, 

(5) Summarise England's colonial policy. How (ar was it fur- 
thered by the natural resources of the several colonies? With what 
colonial interest* did > Mini. Wealth of 
Nations, Bk. IV, Ch. Ml. I't II. 11 * VKI>. ivliminarics of the 
Revolution, Ch. Ill; American Husbandry, Vol. I, pp. 58-60 

.56-176, 180-329, 35>-3S8, 434-446; Vol. II, pp. |4 
ASHLEY, England's Commercial Pol 34-41. 

(6) Estimate the effect of restraints imposed on the manufacture 
of woolens, hats, iron goods, on the exportation of tobacco. 

these disadvantages offset by remission of import duties and boun- 
ties on exportation ? BEEKS, Commercial Policy of England, C 
III, pp. 197-^04. 

(7) How far docs the Navigation Act as supplemented in 1663 
conform to the commercial policy suggested in HVKJ- M'S We 
Planting? Weigh the advantage and disadvantage to the 

of the exclusion of Dutch ships from American ports. ADAM SMITH, 
Wealth of Nations, 1 :REWS, Colonial 

Sdf-Govcrnment. i I. 0* \ I Ml 1" IV, Q MI. 

(8) What considerable exports were not enumerated ? and what 
market did they find ? WEZOEN, Vol. I, pp. 142-164. 

(9) What was the bearing of the Molasses Act? BEES, Com- 
mercial Po! I What colonies were most seriously affected 

MKland'b monopoly of the export trade? BEEBS, British Colo- 
nui Mkgr.Ch.XL 

(10) Compare the specie currency experience of colonial Virginia 
with that of Massachusetts. RIPLEY. Financial History of Virginia, 
pp. 153-162; SIICXEI. History of American Currency, i 

(n) The inherent defects of the paper money issued in Massa- 
chusetts (a) by the government, (6) by the land banks. DAVIS, 
Currency and Banking in Massachusetts Bay Colony, Pi. I. II 

(i) Was the secession of the American foHi*"* due primarily 

42O Industrial History of tlic L'n. 

to the commercial n- imposed by the British 

taxation without represent.. bO maladministration on the |..irt 

\ddress to tin- People of Uritain, 

PITKIN, History of United Stairs, Vol. I, pp. 47^ .; 

. Vol. Ill, pp. 407-450; ! "lina, 

Vol. I, Ch. VI; RAV Q Resolution, Vol. I, 

iTT, Regulators of North ( . Colonial 

Policy, Ch. M\ 

(2) Effect of the seven years of nonintercourse on manufictum in 
the colonies, on commerce. CAI.I.I. \UI-.K. Srle tion>, pp. 439-445; 

I" I'nited 

(3) What did the- Americans gain and what did they lose- by in- 
dependence? Public Papei Vol. I, p. 230; McL.M i.ii- 
LIN, Confederation and Constitution, Ch. V. 

(4) Was tin- repudiation of tin- bills of credit inevitable ? Sin 
Revolutionary Finances;, Confi-dc-ration and Constitu- 
tion, Ch. IV, IX; BULLCK K, Finances of tin- Kcvolution ; SiMNER, 
Finances and Financiers of the Revolution, Vol. I, Ch. IV. 

(5) Account for the failure of the first anti->lavery movement. 
TUCKER, Dissertation on Slavery; DUBOIS, Suppression of the 
Slave Trade, Ch. II, III, IV; LOCKE, Ami Slavery in An. 
BRISSOT DE WARVILLE, Travels in United States, pp. 274-300. 

Legislation against the Slave Trade; COLLINS, Domestic 
Trade, Ch. I 

(6) Compare the opportunities of the pioneer farmer in Kentucky 
with those of the colonist on the Atlantic Coast. I \u.\v. \V 
Territory, p. 130; American Husbandry, Vol. I, Ch. XVIII. 

(7) Illustrate the economic foresight of George Washington; of 
Thomas Jefferson. Index to Works of WASHINGTON, JEFFERSON, 
under titles land, roads, farming, slavery, emigration, etc. 

(8) Trace the democratization of land tenure consequent on the 
Revolution. RANDALL, Life of Jefferson, Vol. I, pp. 194-229, 397- 
400; HAMILTON'S Report on Public Lands; CHENEY, Land T\H 


(1) Franklin's views on the rights of neutral trade W 
Vol. VIII, p. 246; Vol. X, p. 60. How far have they been vin- 
dicated? SCHUYLER, American Diplomacy, Ch. V. 

(2) Hamilton's views on banking, on manufactures, on th. 

of agriculture in national economy, on the sources from which a 
labor supply would be derived. How far do they correspond with 
modern opinion? HAMILTON'S reports on Manufactures, on Hanking. 

(3) Show that the dominant purpose of our comrnen ial poll, y 
before the War of 1812 was the promotion of the shipping in 1 
What was the result for (a) the mercantile marine; (b) the develop- 

ment of our foreign tradr foreign market lor icrioiltural 

products, timber, cotton, wheat , < ./ thr nrpioHation of oar natural 
rtaour -. the Mliiiiiifrl Valley? Pmu*. History of the 


(4) What wa the effect of the protection accorded to manufac- 

ture* on (a) the Federal revenue*. DKWIY, Financial History of 

United State* ; (6) the invention of machinery, BKBOP, Vol. 1, 383- 

c ) utilisation of the waate labor of women and duldren, AB- 

BOTT. Women in Industry, Ch. II; TEXCM Con, View of the United 

.a were the condUioos in Errand that induced emigration 
to the United States? BIKBCCK, Notes on a Journey to America, 
pp. s ',<,.'. 155-157; CHMIHIIIU, Foreign Emigration 

rotes on English conditions). 

The movement of population to Ohio, Indiana, and Illinois; 
how far was its direction influenced by the policy of the Federal 
government as to (a) slavery, BHBJECX, pp. 6, 7 ; (*) disposition of 
public lands, pp. 70-71 ; (0 transportation fadtilies, pp. j 

'ten. pp. 64-82. How far by geographic conditions? 

(7) Compare the conditions prevailing in and character of migra- 
tion to the Mississippi Territory. HASKIXS, Yaaoo Land Com- 

(8) Estimate the influence of cotton culture b fastening slave 
labor on the Gulf states. HAMMOND, Cotton Culture, Ch. II, III , 
COLLINS, Slave Trade. - ; . 1 1 

(9) The effect of the liberal public land policy on the scarcity of 
hired labor Wealth of Nations, 

PP 93-94, 156-15*; CHEVAUEI, p. 144. 


(i) Contrast the effects of the embargo b New England and 
Virgit \merkmn Merchant Marine. C TUN, 

History of the United States; CBANMMO, Jeffenonian System, 


(a) Compart the immediate consequences of the War of iSia 
with its ultimate constquencfi, commercial, industrial, and dipto- 

STWYLEI, American Diplomacy. Ch. \ 
Discuss the advisabaity of substituting reciprocity of trade 
< differential advantages hitherto accorded to United States 


Compare of i8u with the Re\<olutionar>' War b 

on manufactures. BAGS <lustries. Vol. I, Ch. 

(5) Con: rests b our first epoch of protection. TAUSWO. 

422 Industrial History of the I 'nitcd States 

Tariff Hwtory of the United States, Ch. II; \ i K AN STATE 
PAPERS, Finance, Vol. II. pp. <o 7 , 465; Vol. Ill, pp. 32, 52, 56, 85- 
95, 168, 440-444, 447, 45^, 454, 458, 463-463, ^84, 518, 522. 
FLINT, Let XX ; 

Representative views, I Ch. X. 

(6) Compare the duties imposed 01 iron manu- 
factures, cordage, and the raw materials i hereof, in the tariiTs of 
1812, 1816, 1820, 1824, 1828, 1832. Official Tariff Compilati 

(7) Estimate the failures and successes of the second National 
Bank. DE WE Y, Second National Hank; CONANT, Banks of Issue, 
pp. 340-357; CATTERALL, Second National Hank. 

(8) Causes and effects of the Crisis of 1819. CAREY, The ( 
DWIGHT, Travels, Vol. I, pp. 218-222; TURNER, Rise of the 
West, Ch. DC. 

(9) Compare banking methods cast and west of the Alleghenii-s ; 
CONANT, Banks of Issue, Ch. XIV; FLINT, Let NTS from A; 

pp. 130-136, 225, 238, 274, 297. 

(10) Estimate the speculative clement in \ 

ment. MICHAUX, Travels to tl, -d of the Allegheny Moun- 

pp. 188-194; FLINT, Letters, pp. 64-82, 97, 287; Hn 
Journey, pp. 120-126, 154-155, 232-236; TURNER, The New \\ , 
Ch. V. VI. VII. Was this fostered by the land policy of the gov- 
ernment ? 

(n) Compare the New Englander and the Virginian as pioi 
CHEVALIER, United States, pp. 109-120. 


(1) Effect of machinery on manufactures, on growth of t< 

on conditions of labor. MONTGOMERY, Cotton Manufacture; (HI 
VAUER, pp. 128-133, 137-144; WRIGHT, Factory System; C 
1880, Manufactures. 

(2) Exhaustion of the farms of New England and New York; 
resort to improved agriculture. BUELL, American Husbandry; 
MARTINEAU, Society in America, Vol. I, pp. 290-307; STUART, 
Three Years in North America, Vol. I, Ch. XII. 

(3) Exhaustion of the plantations of the southern seaboard s: 
persistence of one crop agriculture. PHILLIPS, Plantation and Fron- 

Vol. I, pp. 55-57 ; OLMSTEAD, Cotton Kingdom, Vol. I, Ch. IV. 

(4) Relation of cotton culture to (a) the westward movement of 
population, cf. population charts in United States Census, 1870; 
(6) prosecution of the slave trade. DUBOIS, Suppression of the Slave 

Reflex influence on the development of the upper Missi 
Valley. FLINT, Recollections of the Last Ten Years, pp. 13-37, 101- 
ii i ; BIRBECK, pp. 102-105. 


( 5 ) Quadrilateral commerce arising out o( the territorial 
ol labor between the <Md South, the New South, New 

LXNMB, Ssiectiont, Ch. VII, LAMBUT, Travels, 


(6) The transportation system of the United States, natural 
and artificial. The adequacy of water transportation. CHCVAUE*, 


(7) Effect o( steam navigation on transportation in the Wot. 
CBXVAUEI, pf> HIKBICK, pp. 150-1 53. 

(8) Note limitation* on charges for transportation and uw in- 
corporated in charter* frmnted to postroad and canal onmpaniea. 

internal Improvementa. Compare in this respect early 
railway charters; MlYU, Railway Legislation, Pt. II, Ch. I, Appen- 

(9) Finandng of btcrnal improvements. MxcDoxALD, Jack- 
sonian Democracy, Ch. VIII; CALLEXDC*, Early Transportation 
and Banking Enterprises; Mouus, Internal Improvements in Ohio; 

ial Improvem< .rth Carolina; PUTNAM, 

ECTn^mtf History of Illinob and Michigan Canal. 

(to) The advantages of the railroad over water transportation, 
LxiDNUt, Railway Economy. 

Economic Influence of the Erie Canal. HULBUKT, Great 
American Canals, Vol. I; HILL, Waterways and Canal Cdhstruc- 
tion in New York State; STVAJIT, Three Yean in North America, 

CBArrca VIII. 

(i) Character of immigration between 1820 and 1860, and atti- 
tude of the American public regarding it. CHICUUNC, Foreign 
Immigration; SMITH, Emigration and Immigration, Ch II. Ill, 
s , Legislative History of Naturalization. 

(a) Economic effects of slavery on (a) immigration; (ft) agri- 
culture; (r) manufactures; (i) ffMnmmy, CALLEXDEA, Selec- 
tions, Ch uLE, Southern Sidelights; Rcssjtu., North 
America, Ch. VIII 

(3) The movement represented in the American Cnsnnfaarion 
Society. Speeches of HEN January x>, 1827, December 17, 
1829; DsBow, Southern and Western States, - 2^4, 267, 
300-310. 34: . M VKTTXEAU, Society in America, Vol. I, pp. 345-395. 

(4) Account for the opposition of Southern statesmen to (a) pro- 
tective tariffs; (ft) ship subsidies; (e) internal improvements at 
national expense. DsBow's Review, see Index; BALLAGB, Tariff 
and Public Lands in the South ; TAUSSIG. State Papers and Speeches 
on the Tariff, pp. 108-213; PHILLIPS, Plantation and Frontier. II, 

424 Indn* i' of the I ";//W States 

(5) Animus of the political battl. 

was it anti-slavery or anti-expansion? Compare division <>i 

the Oregon boundary. BENTON. Thirty Years' View; WEB- 
STER'S Speeches. 

(6) The Mormon Church as an experiment in cooperation 
dorr, History of Utah. 

(7) New goals of the westward mi-ration, (a) Misso 
Recollections; (6) Oregon, SCHAFER, I'.H iii. \..rih\ \\ h 

the resources of the Great I'lains ignored ' I'ARRIMI. ( Plains; 
TURNER, Rise of the New West, ( h VIII. 

(8) Financing of the western railn>.t<U RflMM and 
national aid? SAXHORN. Congressional Land (irants. Ch. I. II. 

(9) Advantages of a scientific classification of tariff s<lu<: 
Walker's argument in behalf of the consumer? TAUSSIG, State 
Papers and Speeches, pp. 214-257. 

How far were the low duties responsible- for tin prosperity of 
agriculture? commerce? manufactures? How much is it to be 
attributed to the coinridmt repeal of the English Corn I 
British Commerce, Pt. IV, Ch. IV; THOMPSON, Pro; 
Tariff Laws, Ch. XXXIX. XL. 

(10) Arguments for and against the subsidizing of steamship lines. 
CONGRESSIONAL GLOBE, 1847-1848, 1852; JOHNSON, Water I 
portatibn, Ch. Ill, IX. 

(n) Rise and fall of traffic on the Mississippi River. I)i 
Tariff History of the Mississippi River System ; OGG, Opening of the 
Mississippi; Rept. INTERNAL COMMERCE, 1887. 

(12) Animus of Jackson's war on the National Bank. CHEVAMI.K. 
United States, Letters III, IV, V, XIII, XIV; DEWEY, Second 
National Bank. 

(13) Compare the crisis of 1857 with those of 1819 and 1837 as 
to cause, effect, intensity, duration. BURTON, Crises; Co 
Banks of Issue, pp. 617-618, 624-628, 636-640; TURNER, Rise of 
New West, Ch. IX ; HART, Slavery and Abolition, Ch. XX ; SMITH, 
Parties and Slavery, Ch. XI 1 1 . 


(1) Comparison between condition of slaves and wage laborers. 
DEBow, Southern and Western States, Vol. II, pp. 223-235; OLM- 
STED, Cotton Kingdom, Vol. II, pp. 184-212, 236-271. 

(2) Efforts to restrain the domestic slave trade. COLLINS, Ch. 
Vn, VIII; HART, Slavery and Abolition, Ch. IX. 

(3) Status of the freedmen. WA-; 'he Negro; 
COLLINS, Ch. V; H\KT. Sl.-m-ry and Abolition, Ch 

(4)* Aims and methods of the Abolitionists. HART, Slavery and 
Abolition, Ch. XII, XIII, XIV, XV, XVI. 

Suggestions to TfOfhfn 425 

(5) Evolution b the ideals of wage-earners* organisations. COM- 
AND Strom, Labor Movement. 18*0-1840; Cotniosii, Labor 

. . 

(6) Element* ikft! went to Uw HtfHtg of the Free Sofl Democ* 
racy. SMITH, Parties and Slavery, Ch. I\ 

(7) Significance to the Uavc interest of the control ot the um- 
toric*. INGU, HBOWK, Lower South, pp. 83-1 

(8) >cnce had the tariff controversy in provoking the 
: LACK. Tariff and Public Land*, pp. 221-163. 

(9) Difficult** of the Confederacy, financial and economic. 
SCHWAB, Confederate States of America. 

(10) Compare the national banking system organized in 1864 

National Rank as to integrity and elasticity of the 
currency. BOLUS, Financial History of the United States, Vol III. 

CONANT, Banks of Iatu< 

Compare the greenbacks with the Continental currency as 
to limit* on issue and guarantee of redemption. Bouxs, Vol III, 
I M; BULLOCK, Monetary History of the United States, 
pp. 60-78. 

Influences making for increase of customs duties during 
vil War. The industrial effect of the war tariffs. TAOTSTG, 
Tariff History, pp. 155-193; STANWOOO, Vol. II, pp. 176-138. 

History of Great American Fortunes; YOUNGMAN, Causes of Great 

I >rt i:::r> 

(u) Cause of decline of our merchant marine after the Civil War. 
ry of American Merchant Marine. 

Lakes. For the <1 Commerce. .LAND 


on Transportation by Water in the United States, 1910; DOCON, 
vimippi River Syst. 

(16) Trace the evolution of the Homestead Act. Compare with 
the head right as to effect on land tenure. What was the effect 
on wages? HAET. Disposition of Public Lands; CONGSJESSJONAL 
GLOBE, 1849, 1850. 1854, 1861-186*. 

(17) Compar. ^ idea of a transcontinental railroad with 
the accomplished fact. WHITNEY. Project for a Railroad to the 
Pacific ; DAVIS, Union Pacific Railroad; FLINT, Railroads of United 

(18) The Grange movement as a preparation for the Interstate 
Commerce Act CULLOM COMMITTEE, 1886; Drrmioc, 

of the Granger Acts . . Grange Movement 

do) Effect of emancipation on land tenure. BANK'S Land Ten- 
< korgia, pp. 30-1 16. 

426 It. ; c/ the L'u ;f t -s 

The Labor Problem of the South, Peasant Agri< u! 
Industrial System in Alabama ; DUBOIS, Negro Farmer, Negro Land 
owner; KELSEY, Negro Laborer; HAMMOND, Cotton Cultun 
IV, V. 

(20) Causes of the industrial revival in the South. Symj* 
AM. ECON. Ass. Pubs., 1904; HART, The Southern South. 


(1) Attitude of the Republican and Democratic parties in the 
tariff controversy. Account for the conversion of the South and the 
Far West, for the protest from the Middle \\ 

Tariff Controversies, Vol. II, Ch. XV, XVI. X\ II. X\ III \\ 
Tariff of 1009. 

(2) Compare conditions determining the tariff legislation of 1897 
and 1909. TARIFF HEARINGS, 1897, 1909; \Vn LIB, Tariff of 1909; 
TAUSSIG, Tariff of 1909. 

(3) Influence of business combinations on tariff I< %'i>lati<>n. HOLEN, 
Trusts and the Tariff; TARBELL, TaritT in Our Own Tin 

(4) Contemporary arguments for and against the subsidizing of 
steamship lines. McVEY, The Frye Subsidy Hill; SI-KIM;, Ship 
Subsidies; GRIFFIN, References on Mercantile Marine Subsi< 

(5) History of the bimetallic standard in the United States. 
What has been the effect of the alternating standards in actual 
The economic argument underlying the free silver agitation 
Financial History of the United States; DEWHY, National Prob- 
lems, Ch. XIV, XX; LAUGHLIN, Bimetallism; HEPBURN, Contest 
for Sound Money. 

(6) Account for the rise of prices from 1890 to 1909. U.S. COM- 
MISSIONER OF LABOR, Bulletins 51, 53, 59; LAUGHLIN, Gold and 
Prices; Kept. MASS. COMMISSION on the Cost of Living. 1910. 

(7) Is our currency system deficient in volume? elasticity? se- 
i'or redemption? SPR AGUE, Proposals for Strengthening the 

National Bank System. 

(8) Argument for and against a central bank. SPR AGUE, 
Central Bank, vs. WARBURG, Central Reserve Bank. The state 
guarantee of bank deposits, WEBSTER, Guarantee Law of Okla!. 

w. COOKE, Insurance of Bank Dcpo 

(9) Show that a railway corporation is a legitimate subject for 
government regulation. Argument for Federal rather than 
control. MYER. Northern Securities Case; DEWEY, National 
Problems, Ch. VI. 

(10) Indicate the evolution of public control represented in the 
Interstate Commerce Act, the Esch and Hepburn amendments, and 
the legislation of 1910. RIPLEY, Railway Problems; HADLEY, 

"^tate Commerce Commission. 

Suggestions to Tcacktn 427 

(t Financial ifKJ pftfMr'aJ dominance of \\tf great 
bmations. MOODY, Truth about the Trutu; YOUNGMAM, 
CSIMCI of Great Fortunes. 

Is the animu* of the anti trust movement with the laborer? 
the consumer? the mttepandsm producer? Afiumeot for Federal 
control? (or Federal incorporation? JEMKS, Trust Problem, Ch. 
Ml Mil. Wmtaan V.idystone Pipe Company; Rept. BUREAU 
or CORPORATIONS on the Beef Combination, Standard OO Company, 

> Compare the aim of 1873, 1884, 1893, 1907, as to dominant 
cause, severity, and interests especially affected. SrtAcrc, History 
of Crises under the National Bankinf S> 

Compare the Knight* of Labor with the American Federa- 
tion of Labor as to aims and organisation. Ki IK, Knights of Labor 
and the American Federation; Kept. INDUSTUAL COMMISSION, 

(15) Tendencies indicated by strike statistics as to chances of 
success, as to cost to employer, employees, community concerned. 
Repts. I'.S. COMMISSIONER or LABOI, 1886, 1900, 1905. Illustrate 
by a particular strike. Kept. COM. ON ANTHRACITE COAL STRIKE ; 

'on. ON CHICAGO Sruut ; GEORGE, Coal Miners' v 

(16) What hope of peaceful settlement of labor disputes offered 
c employers' association? ANDREWS, Development of the 

Employers' Association. . 

Discuss adequacy of the present restrictions on immigration, 
, Immigration; Kept. INDUSTRIAL COMMISSION. Vol. X 

(18) Persistence of contract labor, peonage. Advantages and 
disadvantages to employer? to the immigrant? COM AX, Contract 
Labor b the Hawaiian Islands; Kept of FORD COMMITTEE on Con- 

Jians in Chicago; Repta. COMMISSIONER or IMMIGRA- 

:i''S I "ft h> oiling i;>\ rrmm-nt ri-;-rl :i jK^-ri.i^i- 

(19) Economk effects of immigration for American industr 
rnerican workman. INDUSTUAL COMMISSION, Vol. XV, pp. 293- 

COMMOKS, Races and Immigrant*. 

Special studies in Immigration. COOUDCE. Chinese Immigration; 
Symposium on Asiatic Immigration, A ,1009; BALCB, 

Our Slavic Fellow Cittxms; LORD, The Italian io America; BULX- 
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Whitney, Asa. Project for a Railroad to the Pa< 
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Whittelsey, Sarah. Labor Legislation in V An- 

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Willis. H. Parker. The Tariff of 1909. Journal of I'. 
Economy, 17: i, 589; 18: i, 173. 

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Winsor, Justin. Narrative and History of Ameri.;i. 

Houghton Mifflin Co., 1888-1889. 8 vols. 
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Winterbotham, W. Historical, Geographical, Commenial 

Philosophical View of the United States. New York, 1796. 
4 vols. 

Winthrop, John. The History of New England. Little, Brown 
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Wright, Carroll D. The Amalgamated Association of Iron ami 
Steel Workers. Quarterly Journal of Economics, 7 : 400, 
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Publications, 1894: 503. 

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Vincent, 1895. 

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Bureau of Labor, No. 56. 
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Wright. C. W. Wool-growing and the Tariff. Houghton 
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Bibliography 451 

Wyckoff, WC. Silk ManuUi turct in the United Slate* Tenth 

II <>o$-9i5. 
Wyeih N J Bomt< (Oregon. Orefon Uni- 

Yarrog. V S. The Ubor Quclk>o'i Newer AtpecU. Review of 

YMU. John .r...ih and VidMiludct of Commerce. London, 


Younf, Alfred. Ship Subiidk*. Outlook, January 15. 1910. 
Younc T M The American Cotton Industry. Cha*. Scriboer'i 

Bat xj. 

. Tobacco Poob ol Kentucky and Teaneiacc. Journal PoUt- 

kml Economy, 1910. 


Addytfnn Pipe Company. ,<*, 
94. 96, 

Un-1. in Yincinu. , .- ..-, 

Agriculture colonial, 4*. 4Q 

, . iftadMJ 

no, o6-7. joo. by 

*| ': -< ' 



*6i. by 

7-Q, joo-u; 

'o. S$. " 
$. U: Ibe GCMMM 

r, of i07. jig; Uvarad by 

'. M - 

6i. 310, 398; iBac'Mtiilha oi 


of Iran 


Ami Trua U. Fkrd. joo. 
Alcbboo. TopeU. MM 
14*. i<i. 

and Ohio 
Rankniptcies. MO. MI. jo-i. 

joj. JI4-S. ijo 



G, 316-7. 
Act. 13' 
Baud of Trmd. ud 

Bonds: Federal 108, 15$. to* $44-5. 

ofcdentc. io. 
Boooe.Danki,$. .70. 
Barton. 5. is. 74. 7* 05. ioj. 117. 


$j. 14*. 104. 
Albert. 177 

C*WcnU ceded - . ; 

corny of anU 
Cvmt. Lord BakfaMrc. to, 

m ij 




Delaware and Rant an. 220 : 
ware and Chesapeake, 2 20; V 
220; Ohio, 220; Dismal Swamp, 
Chesapeake and Ohio, 222; 
\\Ylland, 226; Sault Ste. Marie, 
226; Des Plaines, 226; congres- 
rional aid, 220-1. 

Carey Act, 402-3. 

Carolinas: colonial, 30, 38, 60- x ; 
North, 45, 100, 238; South: part 
in Re\"lution. os, 100, 101, 102; 
attitude toward slavery, 44, 45, 
110-20; cotton culture, 183, 238, 
230-40; cotton manufactures, 238- 
41, 311; first railroads, 222-3; 
nullification, 197; secession, 279. 

Cartirr, Ja> <|iirs. IO, 22. 

Cattle, 46, 50, 61, 130, 156-7, 238, 


Chandlers, 143. 

Chartered companies, 23-6. 

Chesapeake and Ohio Canal, 222. 

Cheves, Langdon, 200. 

Chicago, 217, 226, 303, 306, 321. 

Chicago, Burlington and Quincy 
Railroad, 350. 

Chinese immigration, 300, 362, 369- 

Clark, George Rogers, 1 27. 

Clark, William (see Lewis and Clark). 

Clay, Henry, 194, 271. 

Cleveland, Grover, 315, 339. 

Clothing: homespun, 49, 116; ready 
made, 256, 260, 370. 

Coal: anthracite, 187, 218; bitumi- 
nous, 240, 259, 312; statistics of 
production, 241, 289; pr< 
duties, 145, 318. 

Coastal plain, 16, 375. 

Collective bargain, 365, 367-8- 

Collins Line, 265. 

Colonists, character of, 12, 19, 38-9, 
58, 60, 61. 

Colonization Society, American, 271. 

Columbus, Christopher, 2, 8; Bar- 

Combinations in restraint of trade, 

Commerce : colonial, 5-7, 24, 62, 63, 

76-7, 78-0, coastwise, 76, West 

i. 51, 62, 68, 77, 92-3, 94, 104, 

West African, 78, restrictive legis- 

70, 82-5, 92-4; Revolu- 
tionary War, 06-8, 09, io< 
ii.;; li.ntrol . 
4; disiriiuinatiiiK duties 
ies, 138-40; 
of 1812, 139, 176-80; 
policy, 181-3; effect 
tariff, 255-6, 258, 262; efli 
repeal of Corn Laws, 255. 
statistics of, 134, 140, 181, 262-3, 
327-31 ; chart, 64. 

astwise, 242, 263, 265- 
6, 294, 330. 
Commerce, Great Lakes, 166, 226-7. 

294, 33 

Comm< ;, 137, 328, 


Commerce-, transatlantic, decline of, 

283-4, 292-4. 
Comnv ;. 138, 

139, 140, if. 7 

25, 27, 28. 
Communistic cxiK-rimcnts: Ov 

275 ; Fourier associations, 277. 
Conditions of Plan' 
Congress, Conlim-ntal, 103-4, *O5, 

107-13, I2O-2. 

Congress of the Confederation, 115, 


Connecticut, 28, 35, 66, 70, 82, 86, 121. 
Conservation, National Commission, 


Copper, 7, 12, 289, 328. 
Corn. Indian, 7, 20, 29, 39, 46, 49, 50, 

S3, 54, 50, 77, 128-31, 193, 256, 

314, 316, 318, 340. 
Corn Laws, 77, 255, 256. 
Cornbury, Lord, 66. 
Cornell, Ezra, 252. 
Coronado, 10. 
Cortes, 8. 
Cotton, 37, 65, 77, 82, 151, 164, 183, 

186, 194, 195, 207, 208, 209, 210 ii, 

238-40, 256, -272, 328. 
Cotton gin, 151, 241. 
Cotton manufactures, 149-51, 184-6, 

195, 259, 287,311,314-6, 328, 350. 
Coxe, Tench, 152, 1 86, 189. 
Crises. See financial crises. 
Cuba, 89, 317, 330. 
Cumberland Gap, 124. 

Cumbcrkad Read. 167. x>j 

y: H**r: riiloalil. 46-7. 

M-*. IQ*-00. S7. *7. * 

r. Ihr Spede 

Orotkr. *>* ud*k " 
ajo-7. latUaik* ol . 

* I'M, 

ft, ol j*7*. JJ7. ol ffoo. jj7. 
ol I0oi>, 140 t ; bank MM* i* 
MftfoMl IS4.ISJ If) -' ll 

>. Walr UaU 10ft. Ml. M. 

A/./Vr 455 

184-$. .141-*. droiUtlofi. 


>$.3. S* 





. . . 

Dedanfary Art. o*. 10$. 
DrUwmrr. Ur 

Dnert Uod Ad. 40J. 


A . Jvs 


Dry farabc. 409-7. 

\ ! H| \ :-- :;> y 

}-;: ,|ia !..',,, ,. ( . |p 

Irfd I-! ' 

Bricwm. tj6, 
Erie Ctod. ir-. 

Exports: colooU! 
to. - 104 : 

lk U. 104. 140. i;. iSj. JS6, 5U 

Pal Unr. IT. MO. 
jo. 5 . ' 

im: ol i'/o >oo-i. of 
if J7. *-ji. ol **JD. tji. ol if 57. 
66-7. ol i if j. joi -4. ol /* ; 

s. *4* of '*vJ. uo: ckvt. jo>. 

90, j $i. oj. 

'- | ',- .; 

PM J ! 

Flu. 4* 00, 6$. 04. 100, J, 316. 

HoridA.0. 31 

I. MlQ Mil r || 4X, 

of. JT-I ; nfoN 


o. 77 I 

FrmnkHn. Bco^min, oft. 108. i 
Free SoO pwty. j 7 - 104. 
Frwdmaa'ft Buimtt. y* 

Frdu: culture, jo, $j. 54, 90. 61. 
vi; dotie* oo. 7&. 00. JiQ- 

Fto trade: aAiH. 1 //'is. M, o. 
SL S3. 61. 64. 70-7: farther de- 
vrlopment la the WeM. 114. <4A 

G^pe. Lyoun. 341. L _^ t _ Lj __ L 

156; report oo 

ioa jx> 10 


6, go. I4J. IS6. 7. 

Of W*. IS4. of If M. A of ipoo. 

mf*. cucx4y. IS4. 
JIS. 345. WO-7. 



Gold Gout, 18,44,78,1*0. 

Gomes, g. 

Gorges, Sir Fernando, 28, 29, 40. 

Gorges, Robert. 40. 

Gosnold, Bartholomew, 15. 

Gould railway system, 

Government Revolutionary 

War, in ; Civil War, 285. 

Grange Movement. 307. 

Gray, Captain Robert, 171. 

Great Bridge, 74- 

Great Britain ...l>nial policy; 
claims to 

15, character of plantations, 14, 16, 
conquest of Dutch and Swedish 
colonies, 19, encourages agricul- 
ture, 62, discourages manufac- 
tures, 63, 66, 68, 72-3, restricts 
colonial trade, 79, 82-5, levies 
revenue duties, 92, 94, 95-6, at- 
tempts to vindicate imix.-rial au- 
thority, 98-9 ; commercial relations 
with the U. S., 114-5, *39, i75~9 
180-91, 256. 

Great Deed of Grant, 38. 

Great Northern Railroad, 349, 350. 

Great Southern Railway, 225. 

Great Valley of Virginia, 58, 59, 123. 

Greeley, Horace, 277, 294. 

Greenbacks, 285; depreciation, 285; 
redemption, 286, suspended, 286. 

Grenville, Lord, 90, 95. 

Griscom, C. A., 333. 

Hakluyt, Richard, 14, 22, 23. 
Hamilton, Alexander: report on 

manufactures, 146-8; currency 

recommendations, 154-6. 
Harriman, E. H., 349, 350. 
Hani man railway system, 350. 
Hat manufacture, 68, 143, 189, 190. 
Hawaiian Islands, 328, 330, 331. 
Hawkins, Sir John, 13, 22. 
Hazard, Rowland, 187. 
Head right, 33, 38. 

Health, National Department of, 393. 
Hemp, 60, 62, 94, 130, 162, 104, 196, 

256, 2S7r 36. 
Hides, 46, 49, 67, 68, 83, 130, 146, 

316, 319- 
Hill. J. J, 350. 
Holland, 17, 18, 19. 

Homestead Law: unsuccessful hill, 
204-7; Act of 1862, 296-7; in 
ilucnce on speculation, 303. 

Howe, Elias, 260. 

Hudson, Henry, 18. 

\ 76, 208. 

Hu.vscy, Obed, 101. 

Illinois Central Railroad, 250. 

Immigration: statistics, 1840-^60, 
232-3, 1860-' 70, 296-7, 1870-1905, 
368-70; i-llu irncy, 292, 
370; attracted by public land-, 
296-7 ; change in character, 368-9; 
distribution, 369; Chinese, ,$00, 
362, 370, 372. 373 1 German, 19, 54, 
157, 234, 292, 369; I 
157 234, 292, 300, 369; Italian, 
19, 369; Japanese, 371: Scandi- 
navian, 292, 369; restri(ti\< 

Import duties, colonial, 82-3, 84, 90, 
92, 94, 99, 101. (Set 

Imports: colonial, 65, 77, 79, 82-3, 
94, 96, loo, 10 t, ioi, 

104, 141, 189-90, 208, 258-9, 283, 
320-1 : charts, 101, 257, 302, 329. 

Impressment of American seamen, 
175-6, 179, 181. 

Indentured servants: term* 
tra.t. 42, 43, 44; advantages of 
system, 44, 45, 46, 54, 57. 

Indians, 7, 8, 18, 20, 40, 41, 51, 53, 56, 
72, 76-7, 123, 125-7, 158. 

Indigo, 61, 63, 82, 115, 118, 144, 197. 

Injunction, 366. 

Inland Waterways Commission, 407. 

Inman Line, 332, 333. 

Internal improvements, 166, 167-8, 
169-70, 208, 216-25, 298-300. 

Internal revenue taxes, 284, 287, 288, 
313, 318. 

International Mercantile Marine 
Company, 333-4- 

Interstate Commerce Com mission, 


Interstate commerce law, 353. 

Iron: colonial, 7, 23, 26, 60-72, 73, 
83; new resources, 188, 241, 289, 
312 ; development of manufactures, 
116-18,187-8,320; protective leg- 



10- 1 1. J40, 4. 591. 401. 

119. - 

loan in Spain. 108; 
cumcy. no; on 

. -.-. 
Bin. ijo. 

i*. 119; M- 

< (cuiUI Und 

J.v.r ! I ; ; . 
,': . ' I .,:, 

ry, 109; h> 


117, S7. t6a. 


105. .- 
Ktnt. Butler, 16$. 

UfH MadMM 4: 74 

Ubor: cniooiaJ. ii. 4 -5. 

frtr. i. trS; 

ntanJBifl ..... 17* i. 178. .104-6. 
36t-*.366; protrdivc k^Utioo. 
.105-6. jto. MO~I ; bumitt of 
*tbticx jos A J6i-j; cootnct 

15-0, 30-7. l8 54. 57, JO, oa, 6t, 
no. taS. 


Uw Liar. 165. 

1,-v-rr MMteftOT If .". ft ' ' 
>* ML J56. 6a 


Leoovd Bcothm. TO. 

Lewi. ( Mrriwrtbrr) and CUrk (Wl- 

. fj. M. 6. ja. J^ 

. IV< 


- , - 

187-8; lUmUtoo't rrjwt. 140-8; 

rrport. K, 
If arm*. Fray, o- 

o. 101. 119, 189* >$o, 

MMOO. John. >o. 

MuMchtart* .-. 189, 195. 

MO, 290.305. 
MMMchittttu Bay Colony, n. 8. 

55. 63. 64. 65. 66. 68. 70. 

7Q-7.8 : 83. 84. 85. 86. 87. 88. 105. 
01 ' ' ' ' 1 ' - 
McKinlry. WHIiwn. ji6, 319. 14O. 
McKinlry A. ^-7. 

Mcdoo Sodrty of tht Middb 

. 160, 16*. 165 


ITT. 170. 
Mof. i 
Rivrr. o, i*. 115. 139. 

Valry. *o, ITI. >- 


Mobfle and Ohio Railroad, 950, 351 

Mohawk Valley, 7, 36, . 

Molaascs. 78 83, 84-5, 9-3, oo, 104, 

146, 180, 103, 106, 256. 
Molasses Act, 84-5. 
Morgan, J. P., 333, 349, 35<* 
Mormons. 246. 
Morton, Thomas, 40. 
Mutiny Act, oo. 

Nails, 71, 143, 188. 

Narvaez, g. 

National Labor Union, 305. 

Naval stores, 23, 26, 60, 6 1, 64, 80, 

81,83, 115, 137, 139,328. 
Navigation Acts: British, 81, nj; 

'33-5, 137- 
Negro: as laborer, 308-9, 311; ii 

peasant farmer, 370. 
Nemacolin's path, 123, 167. 
Newell, F H., 407. 
New England, 15, 20, 33~5, 36, 50, 51, 

52, 65, 67, 68, 70-1, 74, 77, 78, 82, 
84, loo, 1 20-i, 122, 143, 145, IQS, 
197-8, 249, 314. 

New England Association of I- arm- 
era, .V and other Work- 
inRmen, 276. 

New Hampshire, 35, 86, 87. 

New Harmony, 275. 

New Jersey, 30, 37, 44, 54, 71. 115, 
"8, 359- 

New Orleans, 12, 166, 208, 212, 230. 

Newport, 76, 78. 

Newport, Captain, 25, 26, 39. 

New York Central Railroad, 223, 350. 

New York City, 18, 117, 208, 230, 
267, 276, 303, 314. 

New York, colony and state, 30, 36, 

53, 70-1, 82, 86, 95, 96, 100, 116, 
122. 189, 193, 198, 248. 

Nicollet . 1 1 

Nonintercourse, 06-7, 100, 179, 243. 

North, The, 122, 208, 243, 267, 

Northern Pacific Railroad, 303, 349, 

Northern Securities Company, 350, 


Northwest Passage, 4, 9, 10, 18. 
Northwest Territory, 157, 158, 160- 

2, 213-4. 

Oceanic Steamship Company, 332. 

Mi| it< 

-3-4, 165-6, 188, 



Ordii. . 62. 

Oregon, 246, 247-8, 330. 
Oregon Trail, 247. 
: '"!>< rt, 275. 

Mail Steamship Line, 264-5, 


Panama. Isthmus of, 4, 6, 21. 
Panan M-S. 

manufai t vires, 143, 189, 256. 
Pasturage, 381-3, 399- 
Patent law, 148. 
Patrons of Industry, 307. 
Patroons, 18. 
Pcnn, William, 31, 36. 

k 30, 31, 36, 44, 54, 66, 

82, '>. 100 i. i id, 122, 143, 188, 

189, 217-8, 248-9. 
Pennsylvania rail: n, 349, 

351, 391- 
IVtroK-um, 200-1. 
Philadelphia, 31, 96, 118, 142, 143, 


Philippine Islands, 4, 330. 
Phosphate, 386. 
' inp, 365. ^ 
Piedmont District, 17, 58-9, 62, 100, 

105, 146. 


Pilgrim Fathers, 27, 39. 
Pin< hot. (iifford, 407. 

niinKs, 46. 

Pitt. William. o.\ 06, 97, 99, 103. 

\m Combination, 358. 
River, 10, 246. 

Plymouth Colony, 15, 27, 35-6, 77. 
Plymouth Company, 24, 26, 27. 
Ponce de Leon, 9. 
Pony Express, 252. 
Poor whites, 236, 309, 311. 
Popham, CieorKe. 26. 
Popham. Lord John. 26. 
Population: statistics, 16, 19, 44, 

/,,,/, r 


IJA, IM. Ml-' \ 999. 

Q7, J6 v \ U*. 

<. Ai. joo. 

, Peter Buefl. 116. 


Price* 46-7, in-*. 166. oi. tjo-i. 
to-*. "MS. J*. iw i ! cbMt, 

PriodpiolnWoiU7>. no. 

rrinjL 8 10$. II J. Ij6-?. 



Kk 164-$. 0. 

MJ. 110-1. 114. $0, ? 04-7. 

jot-i. is$. 401. 407-10; 


Pure Pood Lav. jo>-j. 

Quitrwta, 3$. 16. 17. IS. no. 

: , ' ; . ' : ; : 

caatvol j$o i. joo. 307. 

rtfad - .;, n MI >4i ; 
bUoa. joi-i. M; htirf* me* 
ISO. 34?; dwitrr^ 

RaBnMd bad* ,$0. igg. 300. 

n ,.-. M \\ .: - :.'.> 


Rw material*, 61-3. 65. 78-* 83. 




K.' i.l! Jrarv :: 

Rke. J7. 40. 60. to, *j, 04. no. 

RoMk waioa. 73. 74. 7^ 

x>3. i6-7. MS. 

JOl. 407. 40*. 

Royal Africa* Company. 44. 78, no. 
Rum. SI. 76. 77. 7S. 4. 04. 117. 146. 
101. ig7- 

$. 6. 10. . 

>S. IS. &*. U7. *> 

Sah.ig, 51.80.83 s. 10*- 

i. 107. SO. *87. >8a. 357 
Sail Uke Trafl. M. >s. *OQ. 
Satih Su. Marir. > 

1*7. IO& 

Anti Trurf Act. 360. 

X7 3. 103; 

01. 904. '. 

redprodty. <l of Brit- 

war, of i8it, 170-80. of 
:< 4 . "t Civil .-OJ 4 . 
pn<k0tlM its; v 

963; competition of 

en/163-4: dedmeof.3li; charu. 


7. a . 46, as. IM. 

3J6. uS. ijo 

nibim. us. 510. 337-9: 

us. uo-7. uo: 

1.14.19. Mb 

6o.6i-t.6a7S; actutkn acam*. 
110-11. in. too. 161. 160-71. *?* 
9: todtrial cftcieacy of ** 
iio-ii. 136. MO. MS, 7-4; 
rtalfackx no. 

Shk. Captain John. XMS. jo. 
i$i. 187. 

4 6o 


Smuggling. 83-4, 85, 167, an. 

Sofll, 50. 53, 54, 60, 61, 128, I ; 
a 10, 246, 262, 397- 

South, The, 68, 82, 100, 118, 119, 
150-1, 183, 186, 104, 196-7. 198, 
221, 228, 233, 234. 235. 236, 237, 
238, 241-2, 265, 279-80, 307-", 


South Carolina Railroad, 223. 
Southern Railway, 340, 352. 

^a, 4- 

Southwest Territory, 162, 164. 
Spain, 8-0, 20, 21, 138-9. 
Spinning mule, 152-3, 240-1, 259, 

Spotswood, Governor, 59, 72. 

Stamp Act, 95, 96, 97-8. 

Standard Oil Company, 291, 355, 

357, 359. 36o. 
Standish, Miles, 27, 40. 
State railway commissions, 352-3. 
Steel, 116, 142, 289, 314, 316, 318, 

320, 329, 340. 
Strikes: Amalgamated Association 

of Iron and Steel Workers, 358; 

United Mine Workers, 35* 

souri Pacific, 362 ; Pullman, 366 ; 

Statistics, 363-4; sympathetic, 366. 
Subsidies, steamships: ante-bellum. 

264-6; Postal Aid Law, 331 ; Frye, 

Subsidy Bill, 332. 
Sugar, 78, 83, 84, 92, 93, 104, 131, 

193, 256, 317, 3i8, 320, 397- 
Sugar Act, 92, 93, 94, 99. 
Swamp lands, 404-5. 
Sweden: settlements, 19; commer- 
cial treaty with United States, 138. 
Symmes, J. C, 160, 165. 

Tariff Legislation: a Federal func- 
tion, 116, 132-3; acts of 1789, 142- 
6, 1792, 170 $, 148, 1812, 179, 1816, 
191-3, '824, 194-5, '828, 195-6, 
1832, 197, 1833, 197, 254-5, 1842, 
254-5, '846, 256-8, 7*57, 258, 
1861, 283-4, 1862, 287, 1864, 287, 
1872, 1875, 288, 1883, 313-4, 1890, 
316-7, 1894, 318-0, 1897, 319-20, 
'909, 322-7 ; reports of Hamilton, 
146-8, of Dallas, 191, of Walker, 
255-6; of Commission of 1882, 
313-4, of Cleveland, 315. 

Taxes: Federal. 107, 108, 132, 283-4, 

286, 287-8, 313, 318; Confederate, 

Tea, 09, 102, 103. us. U7, 256, 283, 


Telegraph, 251-2. 
Tennessee, 127, 157. 
Texas, 21, 239,312- 
Textile machinery, 152-3, 260-1. 
Timber. i<>. 23, 26, 29, 50, 53, 54, 60, 

61, 62, 77, 78, 83, 92, 137, 294, 3i8, 

319; exhaustion, 378-81. 
Timber Culture Act, 398. 

tte Combination, 320, 357. 
Tobacco, 20, 37, 47, 56-8, 61. ; 

83, 84, 119, 130, 157, 162, 189, 197, 

238, 256, 316, 318, 328. 

hend. Charles, 90, 99. 
Townshcnd Act, 99, 102. 

By, National: surplus, 221, 

231, 258, 316; del'nit. .'31, 283, 


B: boundary, 36, 180, 248; 

lomnirnial. 138-40, 175; reci- 
procity, 181-3, 317- 

development, .^17, .^20, 355, 

357, 358-9; legislation, 359~oo. 

Union label, 367. 

Union Pacific Railway, 297-301, 


Union shop, 366-7. 
United Mine Workers of AmeriYa, 

United States Steel Corporation, 358, 

391, 409. 
Utah. 246. 

Van Bnren. Martin, 277, 279. 
Vanderbilt railway system, 350-1. 

:UO, 10, 22. 

. 15, 32-3, 42-3, 56-0, 62, 72, 

76, 82, 101, 103, 119, 120, 123, 128, 
189, 191, 269-70. 

Wages: 41, 49, 53, 141, *5, 255, 263, 

267, 304, 308-9, 314, 3i8, 361; 

< bar 

I annual report, 1845, 

255; Walker Tariff, 256; annual 

report, 1846, 256, 257. 
Wampum, 47. 

s i Hrf 


durr, 360-0. 

. ;.,;. l< * 

pany. 18, 16 

ie. 51. 51. S3. 64. ?&, Sj. 
. SJ. 54. 01. 77. 7* 04. 5. 

U- -. J - || 

Wl*y. EM. 190. 
Wikkal to** 108, x>i 
Wnigiiu Road. t6. 
Wlboa Act. ii-. 

Wool 40.$4.SO*6s.6t,7>>0.07. 
iio-7. l8o-00* 10$. toft. 107. 

Woolen m*nufacium. 65-6. 77. 7* 
80. 117. ui. 186-7. 180, igi. 104. 
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University of Toronto 





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